San Diego, CA (PRWEB) August 18, 2012
Tobias of realestatemarketinginsider.com issued his explanation on the news from USA Today that interest rates have risen for 30-year mortgages to 3.62% today and his opinion is that it will hurt home buyers because it means that it might be even harder for buyers to qualify for a loan and therefore afford a private house sale. Buyers can contact their local real estate agent or online estate agents to find out if they qualify for a loan.
For three weeks in a row, mortgage interest rates have been rising, and in the last week, they have jumped from 3.59% to 3.62%. These numbers are still just over the record lows that they were at earlier in the year, and while they may speak to rising home sales, any increase in mortgage rates means that it is harder for people to qualify for a loan. The increase was reported by Freddie Mac and implies that further increases will be coming soon. Along with this interest rate rise, housing prices are rising, and the National Association of Home Builders reports the largest rise in builder confidence since the housing crisis began.
Mortgage interest rates are important because they help determine how much a monthly payment will be for anyone who has a mortgage. A rate of 3.62% means that over a 30-year period, a person will repay one thirtieth of the total amount of the loan, along with one thirtieth of the 3.62% that is added to the price of a piece of real estate.
Freddie Mac is also known as the Federal Home Loan Mortgage Corporation. This is a government sponsored corporation headquarted in Tyson’s Corner, Fairfax County, Virginia. Freddie Mac admitted in 2003 that it had understated earnings and was subsequently fined $125 million. This was a major scandal at the time. Since Freddie Mac was in serious trouble following the 2007 subprime mortgage crisis, it was taken over by a government conservatorship in 2008.
The National Association of Home Builders is a trade organization that was created to represent the interests of those involved in construction and home building. Their headquarters are in Washington, D.C, where they participate in lobbying efforts in order to further their interests. Aside from politics, this group organizes the International Builder’s Show, where industry professionals and product and equipment manufacturers gather yearly.
Real Estate Marketing Insider today commented on the increase of the interest rate for 30-year mortgages from 3.59% to 3.62%.
About Real Estate Marketing Insider:
Real Estate Marketing Insider is a publication with the goal of providing tips, analysis, and news about the real estate industry to real estate professionals. REMI’s headquarters are in La Jolla, California.