Mortgage Rates Remain Low For The Third Week In A Row

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As suspected, the effects of the lockdowns on production, coupled with increased economic activity and the out of control government spending are causing inflation.   Demand for products and materials continue to rise, and production is not ramping up quick enough to handle demand, thereby causing shortages, which are triggering price hikes.   Lumber has doubled in cost the last 5 months as an example.  Many other construction materials have increased in price also, causing the cost of construction to rise significantly.  
The only thing holding rates down right now is the Feds actions in keeping interest rates down, which they feel they have to in order to keep the nations debt service manageable.  The county cannot afford rising rates in the treasury market, with all the massive spending plans in Washington.  The bottom line is it will be tough for the Fed to keep rates from rising, as there will be a limit to how much they can intercede in the capital markets to purchase our national debt, and therefore we all have to assume mortgage rates will rise sooner rather than later with all this inflationary pressure that is hard to imagine can go away.
Mortgage rates are still phenomenal and hopefully you have all taken advantage of the spectacular mortgage rates we have had access to the last year.  If not, we recommend you jump in and research your possibilities sooner rather than later.


Mortgage rates continue to remain below 3% as the economy continues to recover.

According to Freddie Mac, the average 30-year fixed-rate mortgage is at 2.96%. These rates follow more closely what borrowers saw in February. Sam Khater, Freddie Mac’s chief economist, pointed to a golden opportunity for homebuyers given the recent economic resurgence.

“Consumer income and spending are picking up, which is leading to an acceleration in economic growth,” Khater said. “The combination of low and stable rates, coupled with an improving economy, is good for homebuyers. It’s also good for homeowners who may have missed prior opportunities to refinance and increase their monthly cash flow.”

Even with this good news, borrowers are still having a hard time finding homes to spend their money on. Mortgage application numbers are down even with the low rates due to a lack of inventory. The positive: housing starts jumped nearly 20% month over month to the highest level since 2006, per the latest report from Redfin.

Although housing starts are rising, lumber prices have skyrocketed in the past 12 months, causing the average price of a new single-family home to increase by $35,872, according to the National Association of Home Builders. With the improving economy and more people back at work, things should start turning around.

If you have any questions, concerns or need a pre-approval, reach out to us today to discuss your options.