Rising Rent, Rising Home Prices, Rising Rates
Rising Rental Prices
Are you a renter? Do you think home rental prices will rise in the next 12 months? According to Fannie Mae’s June National Housing Survey, the number of people who say their home rental prices will go up in the next 12 months increased by 8 percentage points from May. 56% of survey respondents feel rent will rise compared to 48% in May. 56% is the highest level since the survey’s inception. For renters faced with rising rents and lease renewals, it may be time to look into a fixed mortgage which allows you to establish a fixed monthly mortgage payment (principal and interest) for 15 or 30 years.
Rising Home Prices
Are you a renter considering a first time home purchase? It may be time to skip out of rising rents and purchase a home while home affordability is still high. Do you personally think home prices are on the rise? According to the Fannie Mae’s survey, 57% of respondents say home prices are likely to rise in the next 12 months. This is the highest percentage recorded since the survey’s inception. In addition, the number of respondents who believe that home prices will go down held steady at a survey low of 7%. While there are many factors to consider when you buy a home, the home’s purchase price is definitely a big factor.
Rising Mortgage Rates
If you pay attention to financial news, this won’t be a big surprise. The share of respondents who say mortgage rates will go up increased 11 percentage points to 57%, the highest level since the survey’s inception. According to last week’s Primary Mortgage Market Survey (published every Thursday) by Freddie Mac, average 30-year fixed rate mortgages rose to 4.51 percent. Last year at the same time average 30-year fixed rates were nearly a full percentage point lower at 3.56 percent.
In a separate survey by Trulia, the number one concern potential home buyers have is rising mortgage rates. Consumers are increasingly anxious about rates – with good reason. Higher rates raise the monthly mortgage payment for a loan. Assuming mortgage rates will steadily increase in the foreseeable future, many new home buyers understand that timing is of the utmost importance when it comes to home affordability. Waiting until rates rise to 5% or 6% will make a big difference in monthly payment and overall interest payments mortgage borrowers pay over the life of the loan.
Evaluate Your Options
We aren’t trying to scare anyone – we are just hoping you consider your options. There are a number of programs available for new home buyers – some with low or no down payment options. For more detailed information on current mortgage rates and available loan programs, consult a licensed mortgage loan officer. Use our branch locator to find a loan officer in your area.
National Housing Survey
Information in this post was taken from Fannie Mae’s Monthly National Housing Survey. The purpose of this survey is to capture attitudinal perceptions of regular Americans with regards to homeownership, renting a home, the economy, and household finances. Inlanta Mortgage does not guarantee the validity of this information and uses it solely to spark a conversation about homeownership, mortgages, etc. For more information on Fannie Mae’s Monthly National Housing Survey, visit the Fannie Mae website: www.fanniemae.com.
About Inlanta Mortgage
Inlanta Mortgage is proudly celebrating twenty years in business. Learn more about Inlanta’s twenty year history here.
Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.
Inlanta Mortgage is a multi-state mortgage banker based out of Brookfield, Wisconsin. NMLS #1016. Inlanta Mortgage is proud to be named to the Scotsman Guide Top Mortgage Lenders 2012 list and to be among the Top 100 Mortgage Banking Companies in America in 2012