Over the last few weeks, there has been a sharp spike in the rates being offered on mortgage loans. Home mortgage rates are skimming dangerously close to the 4 percent mark. What this means is that the Chandler Homes sellers are not making any more on the sell, the buyer is not paying in less, and the lender is profiting more. This trend has some Chandler Homes buyers hesitant to make the investment in a home now — which may hinder the recent soaring number of Chandler Homes being bought in weeks prior to the rate spike. Troy Reeves of the Troy Reeves team advises buyers that now is still a good time to invest in Chandler Homes as the price of homes are still fairly low. Read more to learn about the rate spike.
Rate Spike in Chandler Homes Mortgage Loans
The sharp spike in loans for Chandler Homes mortgages may, first and foremost, indicate that it is a little too late for homeowners to refinance. Last week, refinancing dropped 12 percent. This rate hike comes just as many more people are becoming eligible for loans and as people started to regain lost equity in their house after the crash. However, rates on Chandler Homes mortgage loans are still very low and many people are jumping to buy now in fear that they will miss out on the best buying conditions for Chandler Homes in years.
Refinancing Down, Buying Still Up
Although this may be keeping people from buying Chandler Homes as aggressively, plenty of buyers are still eager to make their purchase. Mortgage loan applications across the country actually rose around 3 percent from last month and are up 14 percent from the same month in 2012. Higher rates are indicative of a stronger economy and positive data. The Federal Reserve has pumped in billions of American dollars to get the mortgage market back on track since the housing crash started. Many experts are speculating that the rate hike is an indicator that the help may soon end. These rising rates and the possibility of the Feds pulling their cash infusion comes as home prices jumped 10% in March. People buying homes for the first time are feeling the rising cost of buying a home the most.
“by Troy Reeves” at Google