What’s Going On???????
New Year; New blogger! I am Amy, a senior mortgage broker with BMIC and I am going to be giving you a weekly update on what’s going on within the mortgage business. First, Happy New year, and thank you to all our customers past, present and future that helped make 2012 such a great year! We look forward to a great 2013!
If you live in the metro area, or any highly populated housing area you’re probably asking, “what’s going on”? a reasonable question, that has about a million different answers!!!! So I am going to break down the language first and then get a bit more technical!!!
If you’re looking to purchase a new home and you’re wondering about inventory.. Its low!! There aren’t many houses on the market for purchase especially in Montgomery County. This is good and bad! Home values seem to be on the rise and homebuyers are holding on to their home in hopes of a lucrative spring sales market! We shall see!! Fingers are crossed!
Rates; I was on the phone with a new customer today and we were casually chatting and I had mentioned I refinanced my now rental property into a 30 year fixed 3 years ago @ 5.375%. Now I am offering 3.5%. It is amazing to me how drastically low the rates are. If you’re thinking about refinancing, do it! These rates are still historically low; will they stay that way? Hopefully!!! Economically is doesn’t make sense for the Fed to raise the rates, the boost in the mortgage industry could help the economy recover & it has been said that life is better when people can afford to live in the homes they own! However, the Fed say, as the unemployment numbers decrease the rates will eventually start the hike up north. I do not however see a rate with a 5 in front of it for 2013, but crazier things have happened!
The Fed continues to purchase mortgage bonds on a monthly basis, which will help keep the rates low throughout 2013. We also see no change to QE3, which will more than likely be around longer than most had expected despite all the gossip that it will end in 2013!
Forecast: In April 2013, FHA mortgage insurance rates are going up! Those affected are those who refinance in an FHA loan or who purchase a home using an FHA loan. Those of you currently in FHA loans are safe!!! Stay tuned for more info as it becomes available!
As always we are here to help you with questions regarding your mortgage, home purchases and refinances! We look forward to having a great 2013!
Amy M. Goldstein
Senior Mortgage Broker