Mortgage Market Update
Mortgage Market Update- February 3, 2013
In spite of a mixed bag of news this week, the weeks mortgage rates are at the highest levels since November of 2012. In fact, chances are if you think that you might be able to get a mortgage at the lowest-possible rates, you have probably missed your opportunity.
The gasp heard round the US
Earlier this week when the GDP numbers were released, there was a collective gasp when the number came in with negative growth of .1 percent. However, once you started digging into the numbers, it became rather clear that much of the problem was a result of a significant drop in defense spending. Whether we like it or not, spending on the Federal Government level does help the economy and these types of drops in spending do have an impact on the overall economy.
The job numbers were confusing
For those who do not follow the jobs numbers closely, the increase in the unemployment rate might appear on the surface to be bad news. However, the news really was quite good. The increase in the unemployment rate was actually caused by more job-seekers deciding the overall job market was getting better and starting to look for work again. In addition, the prior two months jobs numbers were increased by a combined total of 100,000 which means overall jobs added were actually quite good. So, while the unemployment rate ticked up to 7.9 percent, the numbers are actually better than you might think once you look into the facts.
The home sales numbers
Another good sign was the new homes sales numbers. While this number was anticipated to be slightly lower, in fact, new home sales increased seven percent over the same time period last year. For those who are considering buying a new home, this should be considered good news since this also means more lenders are loaning money again.
What to expect going forward
The Fed renewed their commitment to continue buying mortgage backed securities (MBS) this week during their meeting. The buying will continue until either unemployment drops to 6.5 percent or there are signs of inflation. However, the bad news is mortgage rates will most likely continue their slow creep upwards so if you’re considering refinancing, now is the time. Chances are that the higher rates will impact those who are refinancing more than those who are purchasing a home. There are some other things to watch over the next few weeks and months including the sequester which could drive down government spending even more which could mean GDP takes another hit.
If you’re considering refinancing your existing mortgage, the time for action is now. Contact Core Mortgage Financial and let us help you find the best refinance mortgage for your needs. For new home buyers, we can also help you find the best mortgage rates by contacting lenders who specialize in the type of home you are buying. Delaying is not likely to result in a lower rate, in fact, the longer you delay, the more likely you are to pay a higher rate.
Call our office today at 855-554-2673 for a free home loan quote!