Market Mortgage Rate Update 6102018

Dated: 06/11/2018

Views: 95

Rates have settled back into the mid 4% range for a 30 year fixed rate mortgage today (for borrowers with A credit).

It has been a bit of a see-saw the last two weeks with the political turmoil in Italy sending interest rates lower right after the Memorial Day weekend, and now settling in the mid range of the most recent high and the low of that Tuesday.

Overall economic numbers have been very strong, and growth estimates for the U.S. economy in the 2nd quarter are exceeding 4.0%. That would be a huge accomplishment considering there have only been about 25% of quarters since 1990 to reach 4%, roughly 26 out of 109 quarters, and we averaged 2% or less annual growth from 2009-2016.

Housing thrives with a robust economy, not a gang busters economy with 5-6% growth that is highly leveraged and racing towards a bubble.

Current 3% growth rates are very healthy. There isn’t too much leverage in the economy, but enough growth that wages will rise, and hard assets like real estate can appreciate.

What does this all mean? Rates are on the rise, mid 4’s, and rising.

As a comparison, six months ago a 30 year mortgage with A credit was 3.75%. So, there has been a significant move upward…

However, if the economy beats estimates, and the numbers continue to grow there will be more pressure on bond rates as the Federal Reserve will have to raise rates faster which will create higher mortgage rates.

Whether or not higher rates mean lower prices for homes or topped out value remains to be seen.

If the economy is growing and more people are working there will be more demand for homeownership.

The way it stands now we are in a sweet spot, rates aren’t too high, we have a very good economy, and inflation is tame.

This all bodes well for housing, especially if sellers ultimately succumb to the pressure of rising values and the threat of higher rates, and bring more inventory to the market.

  • If you’re on the fence about selling your house, now might be a good time to pull the trigger before rising rates cause home values to decline…

  • If you’re thinking about buying a house sometime soon, now might be the perfect time to get pre-approved and lock in your terms before rates move higher…

For more info visit: http://www.bondstreetloans.com

Blog author image

Jessica Rojas

Jessica Rojas is an extremely dedicated and committed real estate agent who has been working in the Real Estate field since 1997. She became a licensed real estate agent in 2009 as a sales associate ....

Want to Advertise on this Site?

Latest Blog Posts

Sep 21 2018 34703 1

<div><img src="/wp-content/uploads/2016/12/living-in-home-during-sale-cover.jpg" alt="living-in-home-during-sale-cover" width="700"/></div><h6>Via <a target="_blank" href=

Read More

Buying A Home Take Stock Of These Things Buying A Home Take Stock Of These Things

What are some of the most important factors that buyers take into consideration when looking for a new home? There are the obvious things like price, square footage, location and lot size. Those

Read More

Millennial Home Buyers What You Need To Know

Millennial Home Buyers: What You Need To Know In the past, you’ve likely read about how the Millennial generation is opting to rent rather than buy property. While this still holds true for many

Read More

New Home Construction Boom Expected

The housing market has been trending in a positive direction and economic indicators point to new home construction going vertical. Following the housing bubble and sluggish post-recession,

Read More