We knew the time was coming, and the experts said it would happen most likely in the first quarter of 2010, and it looks like they were right. The good news is that this is another signal that the economy is improving.
During the first quarter of 2010 will be an optimal time for first-time buyers and move ups, with first timers cashing in $8000 per transaction and move ups getting $6500 – all while the interest rates are still relatively low.
Austin Business Journal – by Jeff Clabaugh Staff Reporter
Mortgage rates moved higher for the second week in a row, financial experts reported today.
“Mortgage rates followed bond yields higher once again this week amid signs of an improving economy,” says Freddie Mac (NYSE: FRE) chief economist Frank Nothaft.
Freddie Mac said a 30-year, fixed-rate mortgage averaged 4.94 percent for the week ending today, up from 4.81 percent. A year ago, 30-year mortgages averaged 5.19 percent.
A one-year, adjustable-rate mortgage averaged 4.34 percent this week, up from 4.24 percent last week.
Despite moving higher, long-term mortgage rates continued below five percent for seven consecutive weeks, contributing to a wave of refinance activity. Three out of every four mortgage applications were for refinancing an existing mortgage during the first two weeks of December, according to the Mortgage Bankers Association.
November housing starts were up 8.9 percent from October, with building permits issued in November up 6 percent.
