Sacramento Real Estate Views

Sacramento Mortgage Rate Watch

Interest Rates Jump to Highest Level Since December

According the the FreddieMac Mortgage Survey, the average interest rate on a 30 year fixed rate mortgage increased this week from 4.91% to in 5.25% (West) in response to increasing bond yields. Rates are now at 25 week highs.  One year ago, rates were at 6.09%.

While even 6.09% is low, wouldn’t be nice to lock in at a lower rate?  Most people think so.

What Will Interest Rates Do Next?

Any mortgage broker will tell you that the very next thing interest rates will do is go up.  That’s what they are supposed to say.  In this case, however, they could be right.  The Fed Chairman, Ben Bernanke, went on record today saying that the economy will be showing signs of growth, while not robust, by later this year.  The data is already there to support those comments both on the jobs front and housing pending sale report.

Interest rates are an investment vehicle.  When the economy gets stronger, typically interest rates go up on the basis that there will be more people buying and the demand for mortgages will be higher.

Buy While It’s Still Affordable

Interest rates going up means that as of this week, you just cost yourself a little more than you would’ve cost yourself had you locked in your loan rate on a purchase last week.  Ouch!  That’s gotta hurt!

If you’re looking to cost yourself more money on your purchase, wait til next week to lock but if your interested in paying less for the same home, give me a call.  I’d be happy to help you find a great home for a very reasonable price.

Thanks for visiting!

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Tags: mortgage rates sacramento

This entry was posted on Thursday, June 4th, 2009 at 9:25 pm and is filed under Mortgage Information. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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