Are rising mortgage interest rates enough to cool a heating market? Will housing inventory make a rebound? Your Spring 2021 update.
Tag: mortgage interest rates
Should You Buy A Home This Spring?
Should you buy a home in the spring, or should you wait? Here are four good reasons to buy now.
Mortgage Applications Rise 4.1% According to Most Recent Data
The Mortgage Bankers Association reported a 4.1% increase in mortgage applications from the prior week.
Steve Remington, Benchmark’s Chief Operations Officer, noted that the increase in applications could be a consumer response to the recent trend in the market, indicating a shift from the prolonged period of low interest rates.
“Mortgage Bankers Association Data indicates a slight uptick in refinances for people who might be trying to take advantage of these lower interest rates. We don’t foresee doom and gloom with rates skyrocketing, but we do see an upward pressure of interest rates in the short term,” says Mr. Remington.
He also suggests that people in the process of building a home, or looking to build a home, may wish to consider looking at options to lock in their interest rates early. “If you are building a house and it takes 6-12 months to build, you might consider seeking a long-term lock option that Benchmark may be able to offer.”
You can read the full report from the Mortgage Bankers Association here.
Is Now the “Perfect Storm” for Home Buyers?
Barry Habib with Mortgage Market Guide was a guest on the CNBC show Squawk Box yesterday and shared some great insight on why now is the “perfect storm” for homebuyers.
He points to three big reasons all renters should jump into homeownership:
1. Rent rates are increasing in some markets. It is becoming increasingly more affordable to own a home versus renting a similar home.
2. Interest rates have basically bottomed out. Could rates go lower? Yes they could with the announcement of QE3. But money is so cheap to buy a home that it makes sense to buy right now.
3. Tax benefits. On top of the really cheap mortgage money available today you also have several tax benefits of homeownership. The IRS Publication 530 details what can and cannot be deducted.
Watch the video below and leave a comment on your thoughts about the current housing market: