Have mortgage interest rates already bottomed out? That is the question as we head into the summer of 2011. The bad economic news that has been appearing lately has not been all bad. As the stock market has staggered in recent weeks demand for bonds has increased. That in turn has compressed yields on bonds which has further compressed mortgage interest rates across the board. As a result mortgage interest rates are again approaching all time lows.
If you have considered refinancing to a lower interest rate or would just like to lower your mortgage payments now is a great time to do some research. Contact us in the sidebar to get more information on the various government-backed mortgage programs available.
New reports out are suggesting that housing prices in the US might not see a bounce back until 2014. Here is an excerpt from the recent HousingWire article on the subject:
A lack of demand may keep house prices from a consistent rise until 2014, according to analysts at Capital Economics.
Home prices double-dipped in the first quarter, according to the Standard & Poor’s/Case-Shiller index. While other indices measured some improvement since, analytics firm Altos Research forecasted an up-and-down market for some time. In the near term, Capital Economics said foreclosure sales should keep house prices down 3% in 2011, resulting in another 5% for the year as a whole.
Easing the flow of foreclosures on the market may stabilize prices to 35% below the peak in 2006.
“But while prices tend to rise rapidly in the years after downturns, this time a chronic lack of demand means that they will probably be unchanged in both 2012 and 2013,” Capital Economics said.
The upshot of that is that if you were thinking about selling your home as soon as housing prices bounced back you are probably going to have to wait a few years before that happens. With that in mind, it might make sense to consider refinancing into a lower rate mortgage now while rates are flirting with all time lows.
Contact us in the sidebar to learn more about the programs that are available.