According to CNN, “Rates on 30-year fixed loans rose to an average of 3.95% from the record 3.87% last week, according to Freddie Mac (FMCC, Fortune 500). Meanwhile, the rate on 15-year fixed loans inched slightly higher to 3.19%after sticking at 3.16% for two weeks in a row.”
What does this mean for Elgin Fox Valley home buyers? A slight uptick in rates won’t ruin your ideal mortgage payment now, but it does indicate a strengthening in the housing market for the Fox Valley area. If you’ve been on the fence about buying a home, don’t wait! Why not lock in a rate now, before the spring buying season kicks in? The sooner you get pre-approved to go home shopping, the sooner you can shop with the best rates possible. A home seller wants to see serious offers from ready and willing buyers and a pre-qualification is a great way to get started, but a pre-approval is for serious buyers.
What does this mean for home sellers? This is really wonderful news for sellers because before the home market can rebound from its lowest levels in decades, the interest rates need to go back up a bit. When banks begin to loosen the credit restrictions for borrowers, more people can qualify for loans, which helps to open up the potential buyers pool, even if the rate is slightly higher than previously.
What can you do if you need to sell your home fast? Offer to help a buyer by paying for some of their closing costs, or paying a discount point on their mortgage or adding a chunk to their down payment. This way, the trip to the closing table will get done faster and the selling price is not affected.
Read more from CNN here: http://money.cnn.com/2012/02/23/real_estate/mortgage_rates/index.htm?iid=HP_LN