The Thursday, August 16th, press release from Freddie Mac revealed the 3rd straight week of rate increases for both 15 and 30 year mortgages. The 15 year, fixed rate mortgage ended the week at 2.88%; the 30 year, fixed rate mortgage finished the week at 3.62%.
If you are contemplating a home purchase, taking advantage of today’s lower interest rates can save you quite a bit of money over the life of the loan. Also, the monthly mortgage payment is so much more affordable.
Jennifer Burton, of Windermere Mortgage Services, put together payment comparison charts to compare the monthly payments for homes between $200,000 and $900,000 at 3.5%, 4.5% and 5.5% interest rates. It’s pretty amazing to take a look at the jump in the monthly mortgage payment as the interest rate climbs! If you would like to print the payment comparison charts to look at them closer, click here for homes priced between $200,000 and $600,000; for homes priced between $600,000 and $900,000, click here.
The economy is showing signs of modest growth, which in turn has caused the interest rates for fixed-rate mortgages to rise a little. The following quote is attributed to Frank Nothaft, vice president and chief economist, Freddie Mac,
“The latest economic indicators point toward low inflation but gradually stronger economic activity which placed further upward pressure on long-term Treasury yields and, in turn, fixed mortgage rates. For example, inflation remains in check with 12-month growth in the core consumer price index falling for a second month to 2.1 percent in July. At the same time, industrial production rose 0.6 percent in July compared to a 0.1 percent increase in June and retail sales jumped 0.8 percent in July from a 0.7 percent decline in June.”
According to local economist, Matthew Gardner, the housing market in Western Washington is seeing some home price stability, however the inventory of homes available is still very low. It’s noteworthy, however, to read how the greater Seattle area has been witnessing continued job growth, and how Gardner also notes that increased consumer confidence is evident with the modest economic growth in the retail sector. If listing your home for sale has been on your mind, maybe now is the time to speak with a real estate broker, to discuss how the small inventory has effected the selling process in King County. Request from real estate broker your broker a market analysis of your home. This document will help the two of you discuss what options you have as a seller, and if it makes sense to list your home now.
Now it’s your turn. What are your thoughts about the recent increases in fixed mortgage rates? Has it changed any plans you had to buy or sell a home?