Mortgage Rates Ticking Upward

It has been a while since my last blog, no excuses really, just have had other things to do. But I thought it may be important to let people know that mortgage rates are starting to tick upwards.

I update the rates daily on my website www.goneselling.com and have noticed a small gradual increase. Rates as of this morning for a 30 year fixed rate is 6.625% and 6.125% for a 15 year fixed rate. By the way, I only recommend fixed rate mortgages. If the reason you are getting an adjustable rate mortgage is to keep your payment low, you are purchasing too big of a home/property. Don't fall into the trap, like so many others. With adjustable rate mortgages, I have heard stories of mortgage payments doubling from one month to the next, just because the rate adjusted several points. Sorry for going off the topic a little, it just bothers me to see people making silly mistakes that could cost them their home, their marriage and even their life, over such a decision as this.

Now, where was I. Oh yeah, mortgage rates. Interest rates are going to go up sooner or later, one would think. We are still at historically low rates, and have been for quite some time. Long term rates, like mortgage rates, typically increase when the short term rate decreases. There are many things that influence this increase. Things like inflation, the economy, supply and demand, etc. But I think the primary reason for this increase in rates is competition. The investors who provide this money for lending purposes are wanting a bigger incentive for their risk. Who could blame them, with foreclosure at an all-time high, this is a risky business.

I am definitely no expert on interest rates. But I do know one thing, today is still a good time to buy property with fixed rate mortgages. If you are fortunate enough to buy some property with good rates and terms, why put it off? There are plenty of properties to choose from, as the home market is flooded with listings. Be careful in choosing your property/investment, make wise financial decisions and enjoy the benefits!