Austin mortgage planner John Schutze gives his weekley market update:
œMortgage rates are on the increase as we end the week but still below 5.0%!
For those of you who missed the economic update at Realty Round-up this week, Dr. Jim Gaines from TX A&M said that rates will inevitably be higher down the road.
First, the Fed is slowing it™s purchase of mortgage bonds over the next few months and will stop entirely by March 31st. Mortgage lenders will need to increase mortgage rates to entice wall street investors to purchase mortgages as the Fed scales back.
Second, while inflation isn™t a concern now, the Fed is watching it closely. œIf and when the economy starts to improve, the Fed will raise the Fed Funds rate quickly to counteract inflation. This will trickle down to mortgage rates quickly.
For now, conventional rates are still below 5.0%, so let™s continue to get the message out that this is an unprecedented time to buy a home at BOTH historically low rates and low home prices!
The current rates on some of our programs are:
30 Year Fixed:4.75 %
15 Year Fixed:4.357 %
FHA 30 Year:4.75 %
VA 30 Year: 4.75 %
5 Yr ARM: 3.625 %
Jumbo 30 Year Fixed:5.75 %
Jumbo 5 Yr ARM:4.25 %
30 Year Home Equity:4.875 %
The above rates are based on a $120,000 Loan Amount with a 1% Origination Fee and 720 credit score (660 score for FHA and VA loans). Some programs require slight adjustments for smaller loan amount
John finds buyers the right loan for their Austin home purchase. Check out his Austin mortgage blog.
An Austin Realtor is a Realtor ® in Central Austin. You can search Austin homes for sale at his website.