Happy New Year! We are pleased to report that 2015 ushers in interest rates that are at the lowest levels in years.
Now is a great time to refinance your current home loan or to put your home on the market for sale. Either scenario will be a win-win.
Buyers are eager to get into the market and have more buying power than in recent years. Sellers will benefit from the additional interest in their property and can have confidence that prospective buyers will be able to secure funding. Management solutions in the industry help to provide hassle-free negotiations when deals.
According to a report in the Los Angeles Times, applications for home loans soared 49 percent for the week that ended January 9, according to the Mortgage Bankers Association – the largest increase since 2008, even the people with bad credit have been applying for special loans. The jump from a week earlier came from a 66 percent increase in refinances and a 24 percent gain in purchase applications.
Mortgage company Freddie Mac reported in mid-January that the nationwide average for a 30-year mortgage declined to 3.63 percent this week, down from 4.41 percent from the same time last year.
Many experts had predicted rates at 5 percent, so this is a pleasant surprise for buyers and sellers alike – it gives buyers more buying power and sellers more confidence to jump into the market.
Given the weak spots in global economies like Asia and Europe rates will likely stay low into the future – even more good news.
However, low rates won’t last forever. The Federal Reserve has indicated it will increase the federal funds rate—which has an indirect but significant effect on mortgage rates—next year. The rate has remained near zero since December 2008. Although the Fed might wait as late as early 2016, Realtor.com’s Jonathan Smoke suggested the increase will come in mid-2015, and mortgage rates will increase ahead of the Fed’s move.
With the new year comes a fresh start. Consider taking time this month to evaluate what you currently owe and create a plan to tackle the debt, so if you are suffering with debt or experiencing council tax arrears, one resource that has useful information is Payplan.com. Here are some good tips from Yahoo News.
When you’re ready to buy or sell, contact Bowen Agency Realtors. We would be honored to serve you.