Mortgage Market Update
In spite of the fact that home buying statistics are up and the economy seems to be stabalizing, interest rates continue to tick upwards. Currrently, new home building permits are at their highest levels since 2008 and as of August 20, oil is at $96 per barrel.
Current home interest rates remain fairly low and affordable for most borrowers.
Currently, inflation rates are about 2 percent higher than this time last year. This upwards pressure has created a climate where Treasury rates are increasing, almost on a weekly basis. Treasury yields are currently at approximately 1.84 which is up about 3 basis points over last weeks rates. Those who are engaged in the homebuilding trade feel more optimistic than they have in quite some time. In fact, builders sentiment is at the highest rate since 2007.
While rates may continue to tick slightly upwards, rates are still historically low and those who are considering buying, building or refinancing can still find great deals. Hopefully, the mortgage market will continue to provide more good news in spite of otherwise gloomy outlooks on employment and food prices.
This blog is for informational purposes only. Our mortgage market update is solely an opinion and should never be used to make a business decision. NMLS #849597