Lately, mortgage rates have barely increased. This has not dissuaded borrowers from refining their applications or filing out purchases. However, the current uptick may not last for long. Recent economic data can persuade Federal Reserve to hold off their rate increases for longer. The President of the Naroff Economic Advisors, Joel Naroff recently said, “There is no fear of the Fed right now. There is no real worry that rates should be rising in any meaningful way. But if, we get a better-than-expected job improvement and most importantly, a bounce back in wage gains, this will definitely put everyone on notice.”
Borrowers are the door
The minimal increase in the mortgage rates this week comes at a time when more borrowers are shopping for mortgages with the hopes of refinancing their current homes or buying new homes. The volume of the mortgage applications in the recent weeks rose by 4.6% from the initial week. This is according to the Mortgage Bankers Association. According to the association, purchase applications escalated by 6%. Refinances rose by a margin of 4%. This was in the second straight week of the big increases in the mortgage sector.
The current mortgage rates
The benchmark thirty-year fixed-rate mortgage shoot up to 3.83% from last week’s 3.8%. This is according to the national survey of the large lenders Bankrate.com. A year ago, the rate stood at 4.54%. Three to four weeks ago, the rate was at the 3.93% mark. The mortgages in the current week’s survey averaged a total of 0.3 discount as well as origination points. Over close to fifty-two weeks ago, the thirty year fixed rate had averaged 4.14%.
If you think that’s bad, try talking to the Aussies. The housing market in Australia is booming and prices are skyrocketing (Tip: visit this link to find the best mortgage broker in Sydney)
The home-buying season is thawing
Throughout the country, home values continue to shoot. Pending home sales were equally up by 3.1%. This was in February after January when the rates stood at 1.3%. This was the maiden back-to-back gains since the months of April and May last year.
Are lower rates in the offing?
If things progress as they are currently, borrowers may enjoy lower rates. This is because the central bank might delay their interest rate hikes until that time when they have stronger evidence that the U.S economy is surely chugging along.
It is important to note that the Federal Control reserves the right to control the movement of federal funds rate. This is the benchmark for the interest rates on consumer and business loans.
