Mortgage rates are currently sitting at their highest level in two years, with 30-year fixed-rate mortgages averaging 4.32 percent and 15-year mortgages averaging 3.55 percent. Rising mortgage rates continue to be a concern when it comes to home sales and affordability; however, rising rates tend to indicate a strong economy – and strong economies are good for housing.
Interest rates are still historically low, compared to 6.14 percent for a 30-year mortgage in December 2006. Consumers looking to buy should consider taking the leap as there is still plenty of room for rates to rise.
There is no doubt about it that lending has changed in the last 10 years. In fact, it changes every year. Starting January 9, 2017 FHA dropped the mortgage insurance rate. FHA mortgages are important for low- and moderate-income buyers in particular because a lower down payment is required than with many conventional mortgage options. Buyers with lower credit scores may find more favorable treatment with an FHA loan than a conventional product as well.
I’m happy to share more information about trends in 2017. Email me today.