Comfy Austin

It has been in the news that mortgage rates are surging but it is important to note that existing rates remain very affordable.  The 30-year fixed rate mortgage now averages 5.05% nationally.  This is much higher than the rates we saw last November when mortgage rates were closer to 4.17 and looked headed down from there. 

Over the past 7 days, conventional, 30-year fixed rate mortgage rates have jumped 24 basis points, or 0.24% according to Freddie Mac's weekly Primary Mortgage Market Survey.  Fortunately, because the rates are so low to begin with the actual difference in a buyer's loan payment is not nearly as hard to absorb as it was when rates were in the 12-13% range. In the 1980s, even a small rate increase knocked thousands of buyers out of the home buying market because interest rates were so high to begin with. 

If you are in the market to buy an Austin home and have identified one that would suit you just fine, waiting for further price "drops" or shopping for better housing bargains, may cost you in the form of increased loan payments.  That is something to factor into your decision.  If you end up with a rate you don't like, refinancing may not be an option or if it is, it may cost up to $5,000 or more. Austin Realtors such as myself can help you understand the steps to securing a home and loan.