Mortgage Rates Expected to Rise
The Mortgage Bankers Association’s latest forecast indicates that the rate on the 30-year fixed rate mortgage will average about 4.3% in the second quarter of 2012. Although those mortgage rates are still quite low – especially when you compare it to the 6% or 7% borrowers paid at the height of the housing boom – that’s still a bump up from the 3.88% 30-year fixed rate mortgage average reported in Freddie Mac’s Weekly Primary Mortgage Market Survey on April 12, 2012.
Homebuyers Face Off with Investors
Favorable mortgage rates, low home prices and rising rent costs have made the current housing market the perfect opportunity for investors. This means, when looking for bargains, homebuyers will face off with investors.
“This is true particularly at the lower end of the market and with first-time homebuyers” said Jed Smith, managing director of quantitative research for the National Association of Realtors. “One of the strongest recent housing trends: Many investors pay cash. These cash offers are an obstacle for buyers who need mortgages because sellers prefer buyers who can pay cash to close quickly,” Smith said.
Investors bought about 23% of the homes sold in January, according to the NAR’s latest numbers. That’s up from 21% in December, and that trend is not expected to shift this spring.
More Homebuyers Expected to Jump in the Game
Industry experts expect more homebuyers may soon get off the sidelines. According to Fannie Mae’s March 2012 consumer attitudinal National Housing Survey, several key housing market indicators point to increasing numbers of home purchases. Read more about rising rent prices and Fannie Mae’s survey here.
Whether you are ready to make the leap to home ownership or not, it is never too early to begin learning about the process. Explore our other blog posts on the Home Buying Process here. Learn why home ownership matters, why you need to get pre-approved for a mortgage before shopping and more.
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.