Apr 25 2017 18839 1

Dated: 04/25/2017

Views: 402


Will mortgage rates below 4% spur market?

WASHINGTON – April 24, 2017 – Mortgage rates dropped below 4 percent last week for the first time since November, just as the crucial spring selling season gets under way. The average rate on a 30-year fixed-rate mortgage dropped to 3.97 percent from 4.08 percent a week earlier; in mid-March, the FRM averaged 4.3 percent.

The drop could encourage buyers put off by recent rising mortgage rates to dive into the market and prompt others thinking about making an offer "between now and the end of June" to enter the market sooner rather than later if they fear rates will rise again.

"We are in the spring, and people are out looking to buy homes," says Len Kiefer, deputy chief economist at Freddie Mac. "These low rates are really going to help out with affordability."

U.S. home prices rose 5.9 percent in the 12 months ended in January, the fastest rate since mid-2014, according to the S&P CoreLogic Case-Shiller Indices. The impact of a decline in mortgage rates of about a third of a percentage point would be relatively small in many areas of the United States, but it would be much more pronounced in high-cost markets.

Under last week's lower rates, monthly mortgage payments would decline by about $90 for buyers purchasing homes worth about $600,000. At the same time, these buyers could qualify for more mortgage money – an amount that could swell by about $25,000, according to Black Knight Financial Services, a mortgage and real-estate technology and data provider.

Source: Wall Street Journal (04/24/17) Kusisto, Laura

© Copyright 2017 INFORMATION, INC. Bethesda, MD (301) 215-4688

Related Topics:Mortgage rates

Want to Advertise on this Site?

Latest Blog Posts

Apr 25 2017 18839 1

Will mortgage rates below 4% spur market?WASHINGTON – April 24, 2017 – Mortgage rates dropped below 4 percent last week for the first time since November, just as the crucial spring selling

Read More

WHY SOME HOMES SELL FASTER THAN OTHERS

Here are the facts, and reasons why some homes sell quicker.  http://www.floridarealtors.org/FLRealtorMagazine/upload/ShareThis_Oct.pdfRick Soens CENTURY 21 WIEDER REALTY 954-295

Read More

IMPORTANT TIPS FOR 1ST TIME HOME BUYERS

Click here to find the To Do List for First Time Home Buyers.  http://www.floridarealtors.org/FLRealtorMagazine/upload/FirstTimeBuyersInfoGraphic-2.pdfRick Soens CENTURY 21 Wieder

Read More

SMART HOME DEVICES GET YOU MORE WHEN YOU SELL

Take a look at these new devices designed to get you more $$$ when selling your home  http://http://www.floridarealtors.org/FLRealtorMagazine/upload/JanFebFINAL_ShareThis.pdfContact me to get

Read More