TODAY’S RATES & HOUSING NEWS
I hope everyone had a Happy 4th of July!
Unfortunately, mortgage rates have moved higher over the past 7 days.
See Mortgage Backed Security (MBS) chart below and how MBS prices have shifted lower, which equals higher mortgage interest rates.
Below is Green Home Loans rate sheet today.
Along with Mortgage News Daily average rate across the country.
HOUSE HUNTING WITH LOW INVENTORY
Housing inventory (year over year) fell for the first time in 59 WEEKS!
This is significant because inventory is a major factor in home prices.
Even though current housing market demand is low, inventory is so low that home prices have stabilized and are moving back up.
If rates drop like many experts predict, demand will rise and this will become even more of a challenging market for home buyers.
Our advice continues to be that if you are planning on purchasing a home, it’s better to do now when demand is low and rates are higher.
We expect home prices to continue to go up, and rates to eventually drop.
A drop in rates will bring a surge of demand back into the market place and it will be more difficult to get under contract on a home.
If you can buy today while home prices are lower, you can set yourself up to build equity and refinance to lower your payment when rates drop.
Below is the article from CNBC.