Mortgage rates climbed at the fastest pace in two months last Friday, May 3 as a result of the just released “Employment Situation Report” for April. This report which is a product of the US Bureau of Labor showed that unemployment decreased by 673,000 since the beginning of the year. Good news in the job market tends to cause lending rates to increase.
The average conventional 30 year fixed mortgage which had been around 3.375 percent reacted to the news upwards to 3.5 percent. The average high rate for the year so far for has been at 3.75 percent.
The mortgage rates right now for Wednesday, May 7, 2013 are as follows. Bankrate.com is reporting a slight down turn in rates by .05 percent. A 30 year fixed is averaging at 3.52 percent. An 15 year fixed at 2.75 percent and a jumbo loan (loans over $417,000) have mortgage rates coming in at 3.93 percent.
Mortgage rates will vary during the course of a day. They will also vary from lender to lender. A common misconception is that all banks and mortgage brokers are alike. They are not. Hitchcock Realty encourages folks to shop around. We also encourage people to find someone they are comfortable and confident in working with. Buying a home or a piece of real estate can be nerve racking. The purchase of real estate is definetly something that you want someone you can like, trust and depend on.
An 5/1 adjustable mortgage rates or ARM are averaging at 2.63 percent. Some folks may “poo-poo” an ARM but when used prudently and wisely an ARM can be the difference between owning and not owning a home. Here is how an 5/1 ARM works, the mortgage rates is fixed for the first 5 years of the loan then adjusts or varies every year after that. There are other types of ARM’s such as 3/2 ARM. This just means that the first 3 years of the loan are at a fixed rate with the adjustment every 2 years after that.
Depending on how the ARM is set up you may find your rates ballooning out of control when the rate adjusts. This is something that should be considered before accepting an ARM. Is the new rate that kicks in a few years down the road be “do-able”? If not how, are you going to handle the situation when it arises? The best option is to maintain your good credit and equity in the home or property and refinance with a 15 or 30 year fixed as soon as possible.
Margaret Hitchcock of Hitchcock Realty can help you to find the right lender that can get you competitive mortgage rates. Call Margaret today at (252) 269-2893. She is a Realtor with many years experience in handling all aspects of real estate.
Distress sales, foreclosures, VA loans, waterfront, beachfront-It doesn’t what type of property you are looking for or lender you may need. Call Margaret today and put her knowledge and abilities to work for you.