The average 30 year mortgage rate in the United States rose last week, but still remains relatively low. These low levels on long term mortgage rates should be enticing to buyers. Lower mortgage rates give home buyers more buying power when purchasing real estate.
On Thursday, mortgage buyer Freddie Mac reported that the average 30 year fixed-rate mortgage increased to 3.64 percent from 3.58 in the last week. A year ago, it was at 3.87 percent. This week’s average mortgage rate is still well below the average from last year. The average rate on 15 year fixed-rate mortgage also rose to 2.89 from 2.81 percent.
According to the Associated Press, “The Federal Reserve last week gave a clear signal that an interest-rate increase is likely next month if the economy keeps improving. The disclosure of minutes of the Fed policymakers’ most recent meeting in late April tipped U.S. government bond prices sharply lower, raising long-term bond yields.”
The Federal Reserve also raised rates in December.
Low mortgage rates can be great for home buyers. So far, evidence shows that home buyers have been taking advantage of these low rates. The Associated Press wrote that in April, Americans continued to sign many contracts for homes. Pending home sales have now been driven to their highest point in nearly a decade.
“The National Association of Realtors reported Thursday that its seasonally adjusted index of pending home sales surged 5.1 percent last month to 116.3, the highest since 117.4 in February 2006. Pending sales contracts are a barometer of future purchases,” the AP wrote.
Low long-term mortgage rates are just another reason to buy a home! It is a great idea to take advantage of them now, and make a move on the home in Miami that you have been eyeing, especially since the average 30 year mortgage rate is on the rise. If you are a homeowner and have been thinking of selling, now may be your time too. Demand is high. Contact RE/MAX Paradise today for any of your real estate needs in Miami.