Oh no Mortgage rates are climbing and that is the biggest threat to a good real estate market. Yes, I said oh no to the increase in mortgage rates that are climbing because it will reduce the value of the home a buyer can afford and force more buyers into the conforming part of the market $500,000 and below. If we have 20 offer per home in the lower part of our market we will have even more people bidding for the same property.
Mortgage rates increases are climing over the past three weeks. The costs go up when this happens. As a consumer you must look at the mortgage rate and the points that need to be paid up front to get the rate quoted.
The average 30 year fixed rate mortgage was up 1 one basis point (asis point is one-hundredth of a percentage point).
Adjustable rate mortgage split the one year adjustable rate mortgage rose 3 basis points, while the 5/1 arm dropped 5 basis points.
Mortgage applications dorpped for the second straight week falling a 12.3 percent when compared to a week earlier according to the Mortgage Bankers Association. For the week ending October 23, applications for new purchases dropped 5.2 percent.
Home equity lines of credit jumped up their biggest increase since earily March. The HELOC jumped 8 basis points and Home equity loans rose 6 basis points.
It has been my stance that rates must go up the dollar is dropping and inflation will have to be stopped if we continue on in the direction we are headed. Therefore, buy now while you can afford to purchase a home. Or you will be saying, Oh no the mortgage rates are climbing and I can't afford to buy my home.
Tim Lorenz
Instant MLS Listings & Free Market Analysis
"We have actually closed many short sales!"
949-282-2521
Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!
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