Mortgage interest rates were at a record low last year and have slightly increased since then. This seems like the perfect time for you to become a home owner. The housing market struggled to recover for the past few years, but it seems that it is on the right track now.
Whether you are looking to buy a new home or your home has lost some of its value over the last few years, making it impossible for you to refinance, it looks like 2013 is the year when the home buying activity will see significant increase, making it the perfect time for you to buy a home.
Current Interest Rates
Current mortgage rates today for mortgage loans are around 3.5 percent for a 30-year fixed-rate mortgage. This rate is pretty close to last year’s historic low of 3.31 percent, but it is still a very low rate, that you should take advantage of.
The housing market is recovering, with home prices slowly increasing, and inventory decreasing more and more. The building industry is also slowly recovering, but they aren’t able to satisfy the demand for new homes yet.
Because mortgage interest rates are currently low, you will pay a lot less over the life of your loan. This makes current interest rates for home loans very attractive to home buyers, which will most likely lead to a rise in mortgage interest rates in the near future. Some economists predict mortgage rates as high as 4.4 percent by the end of the year.
Should You Apply for a Mortgage Loan?
Mortgage interest rates are low right now, but so are home prices. Statistics indicate that prices for homes are rising, and could go up by as much as 5 percent in 2013 only.
Many industries are recovering from the economic crisis, which will result in a decrease in unemployment rates, creating more and more home buyers. Also, new construction is on the rise, as the builders are starting to regain confidence. New homes will see, according to predictions, a 20 percent increase in 2013.
With mortgage interest rates near historic lows and the economy recovering, this may just be the perfect time to buy a home. If you decide to wait for lower prices and interest rates, you could end up having to pay a lot more for a mortgage loan. These are just predictions, but common sense also dictates that mortgage interest rates should not go lower than they were last year, especially since they have already started to rise since the beginning of 2013. Ultimately, it is up to you to do your homework, read the facts and the predictions, and decide if this is the right time to become a home owner.