In response to the Fed not ruling out the possibility of a summer rate-hike, the 30-year fixed-rate mortgage rate increased to 3.64 percent in mid-May. Despite this increase, the month ended nearly 20 points lower than a year ago (3.80%). With home prices rising due to low inventory, the fact that mortgage rates remain at historic lows means it is still a great time to purchase a home.
While the economy is still uncertain, consumers can take comfort in the fact that the real estate market is experiencing its best year in a decade. The hope is that the housing market will continue to flourish and bolster our economy as the year progresses. Rising home values and an increase in construction activity in the spring and summer months should help boost consumer confidence. Moreover, current trends in mortgage purchase applications are strong and home sales are expected to accelerate throughout the second quarter of 2016 as we approach peak home-buying season.
All of these conditions mean those considering a home purchase or refinance should take advantage of these low mortgage rates now… since there is no way of knowing how long they’ll last. To get started, contact the home loan experts at Cliffco Mortgage at (516) 408-7300 or fill out our short application today.