This week, 30-year fixed rates fell to a national average of 6.94%, a step down from last week’s 7.04%.* Furthermore, mortgage applications have continued to decline to monthly levels last seen in 1997 while mortgage rates most resemble 2002 trends. Projections Estimate FED Will Raise Rates Again This Year…Continuing from last week, a collection of Federal Reserve chairmen remain confident that the recent rate increases will help lessen our nine-month inflation woes. Current projections estimate that the Fed will raise rates two more times this year ultimately resulting in an additional 1.5% increase. In previous Weekend Updates, we’ve identified that inflation numbers should begin to fall as a result of the statistical relationship
between last year’s numbers and the current trend. Purchase application have fallen about 38 %. But as the economy slows down and home sales dip, Mortgage rates are expected to tumble back below 5% over the next 180 days, which should make as well a move the numbers in the housing sales higher. In related news, I was reading some predictions from one of my favorite local economists John Hunt, who suspects If trends continue, we should be hitting John’s 5.25% target in the next 180 days which should result in an increase in home sales by early spring. This has spurred lots of activity in the Mortgage world to offer now long locks with buydowns and New Homes Builder are offering this. If you are building a house and just breaking ground this is your best chance to get a buydown locked rate with a float down so when your home is ready in late spring you can you take advantage of the lower rate , due to the float down. Your Dream Ho me will be ready for you to move in and since inventory is going to be very low and not expected to improve, you do not have to settle for what is there, you have picked your plan, your finishes, our lot!
THE BEST RATE IS A LOCKED RATE, with a float down. For New Homes you can lock about 180 days and in some cases up to 270 days