This increase in rates is a reflection of the idea that demands for loans and housing are on the rise.
Chicago, IL (PRWEB) May 08, 2015
Lenders like People Home Equity adjusted their rates higher this week. As shown on MortgageNewsDaily.com’s “Daily Mortgage Rates,” the average 30-year fixed rate quote increased from 3.84% on May 1st to 3.87% on May 8th.
Other rate categories also climbed, including the rate on a 15-year fixed loan, which increased from 3.16% to 3.17%. 5/1 ARM’s also increased from 2.96% to 3%. The rate on a 3-year FHA loan increased the most, from 3.5% on May 1st to 3.75% on May 8th. The rate on a 30-year jumbo loan remained at 3.77%.
This increase in rates is a reflection of the idea that demands for loans and housing are on the rise. Prospective mortgage applicants should take notice that competition is growing for purchasing a home. Prospective home buyers should stop browsing hundreds of listings of nice properties and actually get approved for a mortgage to begin placing bids. Once a buyer is approved, they are enabled to bid on properties, boding confidence to sellers.
Peoples Home Equity wants to highlight that 30-year rates have increased during the past 3 weeks. The lender believes this trend will continue. In fact, the Federal Reserve is planning to raise interest rates as the economy continues to improve. Therefore, one should mentally prepare for a higher home price and mortgage rate environment. Too many Americans are employmed now with stable salaries, higher credit scores, and saved down payments to purchase a property. Housing and financing will not be as affordable as it is now for the next 4 months.
If you are interested in purchasing a property and are in in need of a mortgage, consider speaking to a Peoples Home Equity loan officer today at: 262-563-4026