The mortgage rates released on November 6 stood at 4.98 percent for a 30-year term, which in the previous year at the same time was around 6.46 percent. The rates last week were around 5 percent, which clearly shows a decline in interest rates. This is strong incentive for mid-sized investors who depend upon external finance to own a home.
First time homeowners would also have the choice of resale homes, which can be had for a very competitive price and are well below the fair prices at this point of time. Further, the 15-year fixed rate mortgage also showed a decrease from 4.46 percent to 4.40 this week. For any buyer, two important financial questions are the cost of the premise and the cost of the money to buy the premise; both look really lucrative at this point of time.
The gross national product grew by 3 and a half percent in the third quarter of this year; for the first time in two years, there is reason to cheer. This means that the job opportunities and earnings have started to grow- though the increase is not substantial-, but the trends are positive. This change, coupled with the existing mortgage interest rates of 5 percent for a 30-year term and 4.5 percent for a 15-year term, mean a further boost to the confidence of those who are looking to get the best bargain in the current scenario. The result is the decrease in inventory of the real estate properties month on month.
The last week of September also saw an increase in application for home loans by 5 percent, as indicated by a nationwide survey conducted by the Mortgage Bankers Association. The scenario that has led more homebuyers to rush is the federal tax credit of $8000, which ends in April of next year, for first time homeowners. The lowering of rates should help home seekers with the monthly installments and the term of the mortgage plan.
However, there is still a lot of struggle at the job market, which continues to bother the sentiments of most of the people who are planning to take a mortgage loan. Many have noticed the trends of delinquencies and increase in foreclosure rates, which continue to climb at a slower pace. Thus, if you are financially strong and have been saving, it might be just the right opportunity to seize the moment with so many positive indicators.