LIME REALTY GROUP likes to keep you up to date on the mortgage rate and if you’re the type that follows on your own, you’ll have noticed a rather shocking figure lately.
Right now, the rate for a 30-yr-fixed mortgage is 4.9% and has nowhere to go but up I’m afraid. A lot of this upward momentum was caused by sideways trading in the bond market as bond holders waited to see where they would end up.
There’s a percentage difference between long term and short term bonds. You would of course expect to make more money holding a long term bond. But the short term bond rates are constantly changing and the difference between those two rates is often an indicator of a potential recession. As the difference shrinks, the indication is the value of the currency is on the decline and that type of pressure spurs inflation.
Although the Fed has reassured bond holders that the two rates growing closer right now is not an indicator of bad things to come, it has left a lot of bond traders in an uncertain state and they’re trading sideways looking for a break either way.
That seems to be what’s driving the added value to the rate. Well, that and the growing demand for housing. Needless to say, if your mortgage rate is important to your decision about buying… Now’s the time to take a serious look at the market and what’s happening.
The higher the rate goes, the less home your dollar buys. So if you’re worried about being priced out of the home you want, start shopping now.
Lime is the clear choice for real estate in the Southern Utah area.