Freddie Mac announced in early December 2013 that fixed mortgage rates are increasing at a strong rate. In other words, lock in a rate for your home search NOW. This comes amid better than expected statistics concerning both new home sales and private job growth.
HALF A PERCENT MAKES A DIFFERENCE
According to its Primary Mortgage Market Survey (PMMS), Freddie Mac stated that fixed rate mortgages (FRM) issued for 30 years averaged 4.46%. This is an increase of an average of a half a percent for that week that ended on December 5. The week prior to that saw a rate that was an average of 4.29% while a year ago, the average was only 3.34%. The figures for the 15 year fixed rate mortgages showed similar growth with rates at 3.47%, up an average of 0.4 points from last week’s figure of 3.30%. Last year at this time, the average was 2.67%.
JOB GROWTH SPURS MORTGAGE RATES
This news also follows the release of data provided by the ADP employment report that shows that, in November, private companies added more than 215,000 new jobs. This figure shows stronger than expected growth than analysts were expecting. Revisions also added another 54,000 jobs to the October figures. October also saw the sale of new homes rise to 444,000, a number that has been seasonally adjusted. This news comes even as September proved to be unexpectedly weak. The summer months experienced revisions downward, showing flat or weak growth at best.
WANTING TO BUILD OR SELLING TO RELOCATE? This helps you, but get pre-approved for the next property!
These rates continue to solidify what many in the financial industry have been saying for months. Though slow, there is steady growth which indicates that the economy is on the uptick. This is good news for investors who want to tap into these upwardly mobile workers’ newfound ability to purchase a home. It also paints a bright picture for sellers who want to sell their homes quickly and buyers, many of whom prefer to purchase a home that is move in ready.
Contact Phil Ganz to lock in a rate for your home search NOW.