Conventional Fixed 30 Year, FHA & VA Fixed 30 Year Rates remain at 4.5% with a .75 of a point. This is a slight change from my last Wednesday rate update post that showed mortgage interest rates at 4.5% paying 1 point.
According to the Federal Open Market Committee (FOMC) "that the economic recovery is proceeding and that the labor market is improving gradually... inflation is likely to be subdued for some time."
Rising interest rates can affect home prices by lowering the purchase amount for which a buyer can qualify. For example, if the interest rate goes up just 1% from today's rate of 4.5% for a buyer looking at $300,000 homes, that buyer could be looking at a potential $32,300 LOSS of purchasing power--that means that the buyer now must look at homes at or below $267,700. Right now, the low interest rates are providing buyers an opportunity to purchase more house with less money. It's simple economics. If you are looking to buy, now is definitely a good time.
Send me an email or give me a call @ 410.224.0645 if you need further information.
