Interest Rates Up, Buy Before Jumps

June 3, 2009 - PRLog -- Applications for home loans declined by more than 16% last week as interest rates rose, the Mortgage Bankers Assn. said in a survey today.

As expected, the drop-off occurred in people seeking to refinance their homes because the benefits of refis are driven by interest rate trends.

The trade group said the average rate for 30-year, fixed-rate mortgages jumped from 4.81% a week earlier to 5.25% -- the biggest weekly increase since October 2008. Typical points charged, including the origination fee, decreased from 1.28% to 1.02% of the loan amount for mortgages amounting to 80% or less of the property value.

The average rate for 15-year, fixed-rate mortgages increased to 4.8% from 4.44%.

Interestingly, applications to purchase homes rose more than 4%, the mortgage bankers said. If you think now is the time to buy, a rate in the low 5% range still looks pretty good.

Plus Agents are sharing their commissions with buyers... Tell a friend, this is the right time to buy your home.

While rising rates make refinancing less attractive, demand for purchase loans continues to rebound -- a trend that may be driven by first-time homebuyers and bargain hunters.

The National Association of Realtors this week reported that pending home sales rose 6.7 percent in April as falling prices and low interest rates helped make homes more affordable.

Evaristo Lacerda
Realtor® with Lacerda Realty
www.RebateNC.com
Twitter.com/RebateNC

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