Mortgage Rates Dip; But it Won't Last Forever

Last week we saw an average mortgage rate for a standard fixed 30 year loan at 5.07 percent. Although it doesn’t break the record lows that we experienced earlier this year, it is still a great rate for people looking to buy a home.

According to expert Michael Larson, the rates should remain low for another month or two as the government continues to put efforts into keeping them low.

Of course we all know this won’t last forever, rates will eventually trend upwards as the economy begins to take a turn for the better. The smart homebuyer will take advantage of these rates whether it is to refinance their existing home or to purchase a new home.

As a builder of new homes, it is always nice to hear that mortgage applications for new homes are going up. It proves to everyone that the economy is turning and it gives people new faith. According to Mortgage Bankers Association the week ending Sept. 4^th saw a rise of 9.5% on new home mortgage applications.

It’s a good time to be a home buyer.