Fixed Rate Mortgages are starting to creep up a bit and this may have people thinking about purchasing a new home. Unfortunately for every person in a home that also means selling. Although in all areas of the US the market has not come to a complete halt low interest rates and wariness of banks mean it can be difficult to qualify for a new loan.
Fannie Mae says the 30-year fixed mortgage rose to 4.86 up from its 40 year low of 4.17 percent in November 2010. The 15 year is up from %3.57 its low to %4.09.
The main reason for the change is due to treasury bonds that had previously been purchased by the federal reserve which caused investors to stay away and sell off their holdings in fear the eventual sell off of the bonds held by the fed would lower their investment values.
If you are considering a purchase and possibly renting now then this may be one of the best times to buy a home. Spring is the most active time for home sales and there will be a number of really great deals if you can qualify for your loan.
You definitely want to ask for deals… look for homes that have been on the market for an extended period of time maybe 12 months in some cases. Understand your neighborhood and what features make it worth living in your home over the long term.
I would not suggest that you purchase a home with the idea that you can resell it in a few years or rent it. In the past few months we have heard news from the industry that it will be an extended time before we return to a steady selling market. This does not mean a sellers market where homes were very easy to sell but an average market where things are just not as difficult as they are today.
So, if you are considering buying do it for the long term and find a good deal.