Mortgage Rates Tick Above 4 Percent

Dated: 07/14/2017

Views: 453

The Economy: July 14, 2017

Mortgage rates are making upward moves again, with the average 30-year, fixed rate clearing 4 percent this week, landing at 4.03 percent, according to Freddie Mac’s recently released Primary Mortgage Market Survey® (PMMS®). The average 15-year, fixed rate came in at 3.29 percent, while the average 5-year, Treasury-indexed hybrid adjustable rate came in at 3.28 percent—both leaps from last week.

“After fully absorbing the sharp increases in Treasury yields over the past couple of weeks, the 30-year mortgage rate has cleared the psychologically important 4 percent mark for the first time since May,” says Sean Becketti, chief economist at Freddie Mac. “[This week’s] survey rate stands at 4.03 percent, up seven basis points from last week.”

Source: Freddie Mac

The Economy: July 14, 2017

The majority of Americans believe in the wealth-building potential of homeownership, but many are struggling to reconcile the outcome with its cost, according to a new survey by the National Association of REALTORS® (NAR). 84 percent of Americans see homeownership as a good investment, according to the National Association of Realtors®’ 2017 National Housing Pulse Survey. (PRNewsfoto/National Association of Realtors)

Eighty-four percent of survey respondents in NAR’s 2017 National Housing Pulse Survey view owning a home as “a good financial decision,” but 60 percent are also concerned about costs, now and in the future. Affordability, in fact, was identified by respondents as one of their top five challenges, ahead of employment security. Forty-four percent of respondents report the lack of affordable housing in their community as a “big” or “fairly big” issue. Markedly, non-white and unmarried respondents were more likely to label the issue “big,” as well as low-income, renter and young women respondents.

Concerns are being magnified by current housing expenses, and the myth that significant savings are needed for a down payment. Forty percent of respondents report that their mortgage or rent is a burden, and an identical share, particularly older individuals and those in larger locations, believe they need to put 15 percent or more down on a home.

Eighty percent of survey respondents, however, view owning a home as an avenue to equity, and 50 percent view it as a means to ensure a stable environment for children, as well as a secure neighborhood.

“Despite the growing concern over affordable housing, this survey makes it clear that a strong majority still believe in homeownership and aspire to own a home of their own,” says NAR President Bill Brown. “Building equity, wanting a stable and safe environment, and having the freedom to choose their neighborhood remain the top reasons to own a home.”
Source: NAR

Blog author image

David Sarnowski

David is a seasoned real estate professional, specializing in residential sales, rentals and investment properties. David is an 18 year resident of the New Jersey Gold Coast, with the local knowledge ....

Latest Blog Posts

What The Experts Are Saying About The Economic Slow Down

More and more economists are predicting a recession is imminent as the result of the pullback in the economy caused by COVID-19. According to the National Bureau of Economic Research: “A

Read More

How Coronavirus Affects The 2020 Real Estate Market So Far

What Is Coronavirus?COVID-19, better known as coronavirus, is a viral infection with flu-like symptoms. The virus is primarily transmitted via respiratory droplets, such as when an infected

Read More

Now Is The Time If You Are Considering Selling

The housing market has started off much stronger this year than it did last year. Lower mortgage interest rates have been a driving factor in that change. The average 30-year rate in 2019,

Read More

How To Best Navigate New Color Trends

Bold, saturated colors are back after years of calm beiges, soothing grays, and varied whites dominating the interior design scene. What’s a homeowner to do?For years, homeowners and their real

Read More