“Economy Strengthens, Mortgage Rates Rise” ~ Jason Bernabei, TriCastle Realty & Mortgage

Jason Bernabei, TriCastle Realty & Mortgage, The Realty Insiders

“Economy Strengthens, Mortgage Rates Rise”

DEL MAR: February 4, 2013 – Goooooooooddd Monday morning Saaaaannn Dieeggooo!!!!! Not so hot news for mortgage rates this week, and the reasons are obvious, with history as the grand indicator. Here’s the skinny…

Mortgage rates worsened last week amid evidence of an improving economy. Good news overall, bad news for those trying to lock a loan right now, or needed rates to hang on closer to 3% for a refi to make sense.  Yin and yang. Freddie Mac has the average 30-year fixed rate mortgage rate at 3.53% with 0.7 discount points plus a full set of closing costs.

 

Driving forces of the rate-rise manifested last week the Federal Open Market Committee (FOMC) met and voted to hold the Fed Funds Rate in its current target range near 0.00 percent. The Fed also recommitted to purchasing mortgage-backed securities (MBS) and Treasury securities on the open market until the national Unemployment Rate reaches 6.5%, or until inflation rates rise again. It was also revealed that 157,000 new jobs were added to the U.S. economy in January. As the economy prospers, rates tend to go up. That is what is transpiring in the current mortgage market climate. This marked the 27th consecutive month of U.S. job growth. 

 

While current mortgage rates remain relatively low, historically, they can be expected to continue to trend up as the economy improve. Loan officers, my advice? Lock em if ya got em…

If you are looking to buy, sell, qualify for a purchase mortgage loan, or refinance an existing mortgage loan, please contact me, Jason Bernabei, of TriCastle Realty & Mortgage, and myself and my fabulous team of industry professionals will be happy to help! J

Jay’s Outlook: partly cloudy

 

Jason Bernabei, TriCastle Realty & Mortgage, The Realty Insiders

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