Houston Home Buyers, Sellers Should Watch Interest Rates
Quick! What’s the average interest rate for a 30-year, fixed-rate Conventional mortgage? The answer changes daily! As of March 1, 2018, the weekly national average for a fixed-rate, 30-year mortgage was 4.43%, with one-half of a point. Since the beginning of the year, mortgage rates have increased every week! Here’s how to monitor mortgage rate trends, and why Houston home buyers and sellers should watch them!
Each week, Freddie Mac conducts a nationwide rate survey among mortgage lenders, and publishes the findings at FreddieMac.com. Scroll about halfway down the homepage to see the latest average. You can view how rates moved in the past by looking at the Primary Mortgage Market Survey (PMMS) Archives.
If you’re a Houston home buyer, you’re naturally concerned about the direction of mortgage interest rates, because they affect your purchase power. The higher your interest rate, the less home you can afford. But what home buyers may not realize, is that the actual interest rate you’re offered will be affected your credit score, loan-to-value ratio, and overall creditworthiness. So while the average 30-year fixed-rate mortgage is 4.43%, the interest rate you qualify for could be higher.
If you’re a Houston home seller, the direction of mortgage interest rates can affect you, because higher rates can sideline some home buyers, and in turn, soften home prices. As Freddie Mac’s site puts it: “Historically, when mortgage rates surge, housing swoons.” Yet what we are experiencing now is part of an expected, gradual change in monetary policy, which is being augmented by shifts in the financial markets. Home price appreciation could slow this year, but buyers won’t abandon the market.
Need more information about mortgages? Let the KW Energy Corridor team refer you to local, trustworthy lenders! And whether you are buying or selling a Houston home, obtaining a personal real estate consultation from the KW Energy Corridor Team is your first step towards success!
Our local expertise and global resources will be your advantage. Contact us today!
KW Energy Corridor Team
11757 Katy Fairway | Suite 930
Houston, TX 77079