The Week in Review:
What a difference a week can make! Mortgage interest rates moved higher after last week’s Fed statement that the economy is improving and there is reason to believe inflation could pick up. Home loan interest rates increased by approximately .25% – the biggest weekly increase in a long time.
What to Expect
Where are we in the economic cycle? Economic reports have shown improvement since the 3rd quarter of 2011, the labor market is slowly getting back on track and it sure seems hard to find a parking spot at the mall.
I feel we are seeing the bottoming out of interest rates which would be expected as the economy improves. Although a small recovery could be expected this week, I feel mortgage interest rates are about to start the move back up the ladder. Also, debt concerns in Europe have dissipated for now added more pressure for rates to rise. I know it’s hard to remember but only five years ago the prime rate was 8.25%!!
So, my advice is: mortgage rates are on sale, get it while you still can.
Breg-ometer
Next 90+ Days: Lock in loans
Courtesy of:
Bob Bregitzer
Southeast Mortgage
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