Interest Rates

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Interest Rates Are Down Again!

by Chrissie Lawrence

Interest Rates continue to fall! As of yesterday, they hit 3.63% average for a 30 year fixed rate loan.

Its a great time to refinance your home to bring down your monthly payment or to put extra cash against something else like a remodel, new car, or tuition.

Your equity is almost surely higher as well unless you've refinanced very recently.

If you need a recommendation for a trusted mortgage resource, let us know.

Additionally, your buying power is increased...just in time for the spring market!

Click here for link to today's Boston Globe article on Home Equity Loans and Interest Rates.

Inventory still a driver, for now

house keychainA July article in the Wall Street Journal suggests that the power of low inventory to drive and define the real estate market may be coming to an end. In a recent report from the National Association of Realtors, the national housing inventory rose 1.9% in June. But, the June 2013 housing inventory was still 7.6% below the June 2012 inventory. There is a growing concern though that higher interest rates and congressional action to change the mortgage interest deduction could cause a greater impact to the real estate market than low inventory.

Higher interest rates are threatening to slow sales and limit prices. In April there was a slight rise in mortgage rates which has continued through these summer months. According to the Mortgage Bankers' Association the average 30-year fixed-rate loan is now 4.68% which is the highest it's been in two years. Higher rates generally make buying a home less affordable. Luckily, current rates are still considered low enough to motivate potential buyers to purchase a home before the rates climb higher.

In Washington, several bipartisan panels are looking into changing the mortgage interest deduction, in place since 1913, to a tax credit. Many analysts believe that the deduction is costing the U.S. government more than it is helping a majority of the country's population. The belief is that a tax credit would positively impact a greater section of home owners while bringing in more tax revenue. Robert Dietz, a tax economist at the NAHB believes "Home prices would likely come down if there is no deduction, as there would be fewer buyers."

For sellers, this national news and local housing demand means that bids can come in rapidly and bidding wars may even occur. With this benefit comes the reality that some offers are put together too hastily and can fall through. For buyers, the active market means that it is essential to be prepared. Regardless of whether you are buying or selling a home, the tight inventory of today's market and looming financial changes make it essential to have the professional guidance of an experienced and knowledgeable real estate agent.

Need a Guy? Rutledge Properties has dependable, timely referral for all the trades. Contact us if you need a name of a tradesman for a home repair or improvement.


  1. Enis on

    Sorry but I disagree with the whole cceonpt of women in combat, the same as in the cops. Ken, Grams & I saw you blow thru the obstacle course. The women were allowed to run around the cinderblock fence and avoid any other parts that were like the tire jumping part. Legs were too short. Also, they must be given Days off when they are PMSing or some other female peculiar ailment. I doubt the Iraqis are carrying around MIDAL just in case . They demand equality then yell for special treatament because I am a woman and can't deal with it.Be really fair, democratic etc . let Nancy Pelosi & Harry Reid lead the first charge and develop a draft for women . You would see how quickly the baby must have its mother's milk pumping. Just out of bullet range and heaven help the Major who ordered the Mom to hang the baby in her backpack ready for next feeding.. If they want to fight, neuter them first.I have a REAL problem with minorities getting promoted ahead of better qualified and deserving to pay the quoto debt.Don't get me started. We have lost a lot of excellent men in our peacekeeping effort for no real good reason. Should have sent some whiney women instread.

    Rising Mortgage Rates a Catalyst

    mortgage-interest-rates-riseSigns that the U.S. economy is improving are causing mortgage interest rates to rise. These climbing rates are igniting both buyers and sellers to take action.

    Over the past few years, mortgage rates decreased significantly. Lowering mortgage rates was intended to spur everyone, from investors to consumers, to borrow and spend. The strategy encouraged many homeowners to refinance existing home loans, but economists were disappointed to see that it did not stimulate many home purchases. In 2012, 71% of all mortgage activity were refinances.

    More recently, mortgage rates have started to climb in reaction to an uptick in business borrowing, job growth and consumer confidence. The 30-year fixed-rate mortgage, the most popular choice for home buyers, hit the highest level in early March that it has seen in the past six months. According to Freddy Mac, the 30-year fixed rate rose to an average of 3.63%, compared to 3.52% in February 2013 and 3.92% in March 2012. Economists anticipate these rates could climb higher this year.

    Higher interest rates make it more expensive to buy a home.  Most economists believe that mortgage rates are headed back to historical norms, which are well above 5%.  For first-time buyers, dollars will go further at today's rates than tomorrow's rates.  For buyers interested in moving up, rising rates may mean that now is the time to act.  The price of a move-up home will increase faster than the price of their current home, and that, coupled with a higher mortgage rate, could put some homes out of reach tomorrow which are within reach today.

    Rising mortgage rates are an incentive for individuals and families who have been considering a move to act, and to do so sooner rather than later. And, as prices rise, more sellers may jump into the market. Together, these active buyers and sellers may secure the housing recovery.

    Need a guy?

    Rutledge Properties has dependable, timely referrals for all the trades. Are you looking for a mortgage lender? Contact us for names!

    Want more on this topic?

    CNNMoney, Why higher mortgage rates will help the housing market