While rates remain slightly under 3.0% for many borrowers seeking to purchase new homes, the picking’s are quite slim as they say here in the South. The housing shortage isn’t going away any time soon as buyers are finding out that new homes can be somewhat costly even though they may have sold their previous home for top dollar themselves. According to some, they say that the costs have sky-rocketed for homes that are for sale and that if it weren’t for the great rates being offered by the mortgage industry, that they wouldn’t be shopping for a new home to live in at this time. Rates were GREAT last years at time, but rates are a .25% better now than they were a year ago today!
For the week ending May 13, Freddie Mac announced that 30-year fixed rates decreased to 2.94% from 2.96% the week before. The average for 15-year loans fell to 2.26% and the average for five-year ARMs decreased to 2.59%. A year ago, 30-year fixed rates averaged 3.28%, more than 0.25% higher than today. Attributed to Sam Khater, Chief Economist, Freddie Mac – “Since the most recent peak in April, rates on home loans have declined nearly a quarter of a percent and have remained under three percent for the past month. Low rates offer homeowners an opportunity to lower their monthly payment by refinancing and our most recent research shows that many borrowers who could benefit from refinancing still aren’t pursuing the option. Additionally, the low rate environment has been a boon to the housing market but may not last long as consumer inflation has accelerated at its fastest pace in more than twelve years and may lead to higher mortgage rates in the summer.”
ABBA First President, Rich Biagini, says that he would like to see more clients consider the option of refinancing now before rates make the turn and decide to go up again. He believes that once the bottom is hit, that there will be no turning back and rates will take off like a rocket with inflation as its source of energy.
Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.