Mortgage Rates Continue to Drop for July

Mortgage rates fall for the third time in four weeks.

The 30-year fixed mortgage rate fell to 5.39% last week, down from the previous week. This is the third time in the last month that rates have continued drop. With the unemployment rate reported at 9.5% for June and forecasted to be at 10.9% by the end of the year, combined with low quarterly earnings, investors are still unsure of the market and where it’s headed. The 15-year mortgage rate is holding at 4.78%. So far, the averages continue to lower even further according to bankrate.com. Compared to last year’s figures, 30-year fixed mortgage rates were at 6.48%, a difference of more than 1%.

Adjustable rates are also following suit with 5-year ARMs down to 4.82% from 4.88% and 1-year ARMs at 4.82% down from 4.94% according to Freddie Mac.

Between historically low mortgage rates and home prices, this could become a buyer’s paradise and finding the right real estate help is essential. Please contact Sean T Shallis at The Shallis Group for a personal consultation on your buying or selling needs at 201-427-1032.

(source: money.cnn.com)

Existing Home Sales on the Rise

The National Association of Realtors (NAR) announced that for the first time since September of 2005, existing home sales rose for the second month in a row in May. Existing home sales consist of single-family, town-homes, condos and co-ops. Key factors include the first-time home buyer tax credit, low interest rates and affordable home prices, causing existing home sales to rise in May by 2.4 percent. First-time home buyers continue to bolster the market in May by accounting for 29 percent of home buying transactions.

NAR’s chief economist Lawrence Yun states, “Historically low mortgage interest rates clearly drew buyers into the market, and housing remains very affordable even with a recent uptick in rates. First-time buyers also are being drawn off the sidelines by the $8,000 tax credit, which is helping to absorb inventory.” For May, according to Freddie Mac, 30-year fixed interest mortgage rates were at 4.86 percent, slightly higher than April. However, as of mid June, rates had jumped to 5.38 percent. Congress is looking to expand the first-time home buyer tax credit to either extend the expiration date, increase the deduction amount or possibly open it up to any home-buyer.

Performance in the Northeast region was above average for May at 3.9 percent for existing-home sales with a median price point of $243,600.

Between existing and purposed tax incentives, low mortgage rates and home prices, this could become a buyer’s paradise and finding the right real estate help is essential. Please contact Sean T Shallis at The Shallis Group for a personal consultation on your buying or selling needs at 201-427-1032.

(source: realtor.org)

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