Home |  Contact Us |  Bookmark This Page
Need Help? Call (801) 884-9727  |  Listings Available Today   

 Welcome to the GotUtah.com Blog

2014-02-17 22:03:46
Not the time to procrastinate!

Mortgage rates slide again, putting pressure on buyers

MainStreet
Mortgage rates slide again, putting pressure on buyers

Mortgage rates slide again

Mortgage rates are falling fast again, and would-be buyers have to start thinking: Can I afford to wait six months to buy a home with interest rates this low?

And low they are, as evidenced by a slew of mortgage rate data out early this week.

First up is the BankingMyWay Weekly Mortgage Rate tracker, which shows 30-year fixed mortgage rates sliding from 4.40% last week to 4.21% this week.

One-, three- and five-year adjustable-rate mortgages are also in full retreat this week, with the benchmark three-year ARM rate falling from 3.46% to 2.85%.

The BMW rate tracker also shows 15-year fixed-rate mortgages falling, from 3.58% to 3.43%.

Freddie Mac is out with new mortgage rates as well, and they pretty much mirror the BMW figures. Freddie Mac has current 30-year fixed mortgage rates at 4.23% and 15-year fixedloan rates at 3.33%.

While rates are well above where they were last year at this time (at 3.53% for the 30-year rate), mortgage interest costs have dropped significantly in recent weeks.

[Are you ready to get a mortgage? Click to compare interest rates from multiple lenders now.]

'Mortgage rates fell further this week following the release of weaker housing data,' says Frank Nothaft, vice president and chief economist, at Freddie Mac.

He notes the U.S. pending home sales index declined by 8.7% in December, to its lowest level since October 2011. 'Fixed residential investment negatively contributed to GDP in the fourth quarter for the first time since the third quarter of 2010,' he says. 'Also, the Institute for Supply Management reported a significant slowing in growth in the manufacturing industry in December than the market consensus forecast.'

Most real estate industry observers say mortgage rates will rise significantly in 2014, to roughly 5% for 30-year fixed-rate mortgages. But others say rates will go higher, with analysts at the real estate website KeepCurrentMatters.com seeing rates climbing to 6% by year-end.

If that happens and fence-sitting buyers remain out of the market, they could regret it.

Here's one way to look at a $200,000 mortgage stretched over 30 years: At 4.2%, the monthly payment is $978 and total interest is $152,094. At 6%, the monthly payment is $1,199.10 and total interest is $231,677.

That's about $80,000 in extra interest loan payments over the course of the loan, and it's 80,000 reasons why buying a house now, rather than waiting a year, may be a great idea.

Source: homes.yahoo.com

 
Blog Archive
2017-07-24 16:43:41
Open House Timeline:

2017-06-23 19:44:38
Are You Making One of These 7 Landscaping Mistakes?

2017-05-24 14:03:45
The Contractor Agreement:

2017-04-24 15:58:44
10 Money-Saving Tricks...

2017-03-17 13:30:22
When It Time to Get an Accountant to Do Your Taxes

2017-02-01 13:47:03
9 Mood-Lifting Ideas For a Cozier Home This Winter

2016-12-20 13:33:39
17 Awesome Military PCS Hacks

2016-11-22 18:39:38
9 Questions to Ask Before You Agree

2016-10-18 11:06:04
Avoid Last Minute-Itis This Holiday Season

2016-09-22 11:17:27
Fall & Winter Seasonal Maintenance Guide

2016-08-24 13:22:59
Installing a Spa on Your Deck

2016-07-12 14:03:15
6 Home Improvement Projects

2016-06-22 11:40:33
Who Wins the War Over Air Conditioning Your Home?

2016-05-24 10:27:53
PCS Moves and Household Goods

2016-04-19 14:03:15
7 Tips to Fix Mistakes in Your Credit Report

2016-03-23 11:49:26
Your Top Homeownership Tax Questions Answered

2016-02-18 17:32:57
Keep Your Kids Happy and Yourself Sane

2016-01-30 15:24:24
Real Estate

2016-01-19 15:54:06
How to Tell If You Should

2015-12-14 15:27:25
The Truth About How Sellers Choose Their Buyers

2015-11-23 15:25:23
Tips on How To Prepare

2015-10-24 12:03:52
4 Leaf Removal Tools

2015-09-23 14:09:09
10 Tips From a Designer

2015-08-19 14:22:43
A Financial Plan for Your Home

2015-07-22 15:13:22
It's Permanent Change of Station Time of Year

Click here to see ALL articles.


Comment on this Article

Your Name:
Your Email:
Comments:
Verify:  Please enter the numbers shown to help eliminate spam.