Personal Income Data – Why Are 30 Year Mortgage Interest Rates Up?
Homeowners who are looking for low interest rates can take a look at their options in the upcoming months and years for a 30 year mortgage interest rate outlook. Mortgage lenders are offering more mortgage options through the end of the financial year. Interest rates have been steady in recent years but they could very well change in the upcoming months. The current economy has mortgage lenders concerned.
A major portion of the housing market is made up of adjustable rate mortgages or ARMs. These mortgages carry a higher risk than other types of loans but have the advantage of having an adjustable interest rate that will go up over time. When the ARM comes to it will have a much higher annual rate that will go up. Interest rates are up because of the weak real estate market but it could be worse depending on how the economy turns out.
In the last 12 months there has been a slight increase in interest rates across the board. This can be attributed to the recent strengthening of the US dollar, which has made imported goods more expensive. In addition, inflation has contributed to the inflationary rise in rates as well. Most experts agree that the US economy is recovering from the recession and it will only get better.
If you are looking for affordable 30-year mortgage rates, you will need to evaluate your own individual circumstances. You may need to downsize in order to afford your monthly house payments any longer. Or you may not currently own a home and your mortgage payment may not cover your other expenses. You should also consider the fact that home ownership requires a considerable amount of financial investment. If you aren’t prepared to make such an investment then there may not be any home ownership opportunities remaining.
When assessing your personal situation you should also consider the state of the economy and the state of real estate as well. During the last two months there have been many homes that have been put up for sale. This is great news for the 30 year mortgage interest rates. There are a large number of buyers who will be able to pay lower interest rates than if they were to purchase a new home right now. It is a buyers market and prices will continually decrease over the next few months.
The previous month’s figures were revised upward as expected. This was mainly due to higher taxes in California, which went into effect at the end of February. The previous estimate had been $456 billion dollars higher than the actual figures came in at. The estimate for this month was lower than the last twelve months average. One of the main reasons why Februrary figures are revised upward is because of the latest batch of data released by the California state controller. This data shows that there was an unexpected increase in personal income, which led to higher state taxes in January.
With that being said, mortgage lending companies are reporting that this might just be a short-term trend and the numbers may go back down once tax refunds are received. With the federal government having to boost the amount of money it guarantees each year to its mortgage borrowers, banks are being more conservative with their borrowers right now. If the rates were to go up much in the future it would hurt the mortgage lending companies heavily. However, for the time being it looks like this is just a short term fluctuation.
If you want to take advantage of low interest rates now, then you need to contact your local mortgage lending institutions and ask them about their current interest rate offers. Many of them have automated underwriting systems that will automatically pick up your application. You will need to fill out some basic information and the automated system will contact the various mortgage lenders for you and present you with their best offers. From here you can then determine which loan product is right for you and your situation.