Mortgage News: Economic Outlook Positive as Rates Increase to 4.91 Percent

Mortgage News: Economic Outlook Positive as Rates Increase to 4.91 Percent

In mortgage news this week, Freddie Mac released the results of its PMMS® (Primary Mortgage Market Survey®). It showed a steady, but slow increase in mortgage rates for the fourth consecutive week. Although rates are slowly on the rise, they are still hovering below 5% moving into the home buying months of the year.

Home buying season is upon us and the present is a great time to snag some of the lowest interest rates in years, just click here and be connected to one of our lenders.  Though the 30-year fixed mortgage rate increased slightly and averaged 4.91% this week, last year at this time the rates averaged 5.07%.

The economy is showing signs of recovery as consumer spending continues to rise every month. Consumers are showing an increased ability to spend, not just on necessities, but luxury items as well.

Frank Nothaft, vice president and chief economist at Freddie Mac, recently reported on the state of interest rates and the economy. He states, “Mortgage rates edged up following a light week of economic data releases. Although rates on 30-year fixed mortgages have risen four weeks in a row, they have remained below 5 percent for eight straight weeks now, helping to maintain affordability in the housing market. Meanwhile, consumer purchases of retail goods rose for the ninth consecutive month in March, suggesting families have an increasing capacity to spend, which bodes well for the economic recovery.”

In recent news, Freddie Mac also released its U.S. Economic and Housing Market Outlook for April showing increases in home sales due to recent employment statistics and low mortgage rates. It projected a 5% increase in home sales for 2011 as compared to 2010.

For consumers like you, the present represents a great time to get in on the home buying trend and take advantage of the low interest rates and affordable homes. Many aspiring homeowners are not aware of the affordability of current mortgages and as a result they forfeit the chance to own a home.

Questions? If you are at all wondering about your eligibility or how much “home” you can afford, you can contact one of our knowledgeable mortgage consultants at 888-790-0292. They are standing by to answer your questions and discuss the numerous options available for home ownership.

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