There's been plenty of news recently about rising real
estate prices across the U. S. But another area of concern for home buyers in
Tampa Bay is starting to get some media attention too-rising home mortage rates.
Long-term U.S. mortgage rates rose this week, a sign of
market improvement according to the Federal Home Loan Mortgage Corp.
Rates for 30-year, fixed-rate mortgages rose from 3.52
percent with an average 0.8 point to 3.63 percent.
Rates for 15-year contracts were up from 2.76 percent to 2.79
percent with an average 0.8 point.
One point is equal to 1 percent of the amount of the loan
and is typically paid up front. It includes a corresponding discount on the
loan's long-term interest rates.
Interest rates for five-year adjustable rate mortgages fell
to 2.61 percent with an average of 0.6 points from 2.63 percent.
One-year adjustable rate mortgages using 10-year bonds as a
benchmark, averaged 2.64 percent with 0.4 point in the week, up from 2.63
percent in the previous week.
Freddie Mac's VP and Chief Economist said that fixed mortgage rates rose this week on stronger signs
of jobs growth and consumer spending noting that the economy added 236,000 new workers in February
which helped push down the unemployment rate to 7.7 percent. This helped offset
the effects of the payroll tax holiday expiration and led to a 1.1 percent
increase in retail sales, which was well above the market consensus
There is speculation that the record low rates are gone for good. But rates are still at historic lows and housing prices still affordable. It's a great time to buy, but the bottom is long gone.