Higher rates no reason to panic
Posted on April 17, 2010
Filed Under Home Mortgage, Mortgage Interest, Mortgage Rates, Mortgage Updates, Prime Rates
Yes, mortgage interest rates on 30-year fixed-rate mortgages have risen to an average of 5.25 percent. You’d think the world was ending.
No one wants to see mortgage rates rise. Low rates, historically low in mid- to late-2009, were one of the few positives associated with the residential real estate crash. Remember when the rates fell below 5 percent? That was a time for celebration. After all., low mortgage interest rates mean lower monthly mortgage payments.
But that interest rate of 5.25 percent on 30-year fixed-rate mortgages isn’t bad, either. Historically, in fact, it’s downright outstanding.
If you remember the housing boom years — they ended, unfortunately, in mid-2006, right after I bought my home — you’ll remember that rates in the 7 percent range were considered good ones for 30-year fixed-rate loans. That’s right, we all thought rates of 7 percent were as good as it could get.
Now we’re nervous about 5.25 percent? I’d say that those low, low interest rates of 2009 got us all a bit spoiled.
If you’re looking to buy a new home, don’t hesitate just because the interest rates rose. Housing prices are still low — check the stats kept by the National Association of Realtors and you’ll see just how low — meaning that you can buy more house with your money than in years. These ultra low prices make up for the slight increase in mortgage interest rates. In fact, this might be the best time to buy a house in decades.
Comments
One Response to “Higher rates no reason to panic”
Leave a Reply
Thanks for the advice and articles, this is what I needed.