How does the rise in interest rates impact home affordability in and around Gwinnett county ?

Impact of Rising Interest Rates

Interest rates in Gwinett Co.  are still historically low, but both the Federal Reserve and Ben Bernanke have pretty much signaled the end to the Bar of Insanely Low Mortgage Rates. The Fed is about to reduce its program of bond-purchasing by the end of 2013, thereby suggesting the beginning of the end of the repressed interest rate. The interest rates of a 30 year fixed rate mortgage loan will hit the 4.25% benchmark rate before the end of July, and this rate will see a sharp rise from 3.5% in the month of May, 2013.

Keith Gumbinger, vice president at a mortgage information website, suggests that the quick rise in the mortgage rates might put a fork in the first time mortgage and the refinancing market. As the refinance applications account for two-thirds of the new loan activity, there’s going to be a steep change in the market.

The housing market in and around Gwinnett Co.  is going to see a lot of changes due to the sudden rise in the mortgage interest rates. Freddie Mac said that they’re about to release results of the latest Primary Mortgage Market Survey. According to recent reports, the interest rates on the 30 year term mortgage increased by 1.25 points and this is a sweeping rise that might affect the way in which the home buyers behave and those who are about to refinance their mortgage loans. And that is already dated news.

It is pretty obvious that the applications for refinancing, which accounted for 8 out of 10 new loan applications, were down by 10% from week to week soon after the mortgage rates started rising higher, according to reports by the Mortgage Bankers Association. Another separate survey by the same organization showed that the demand for mortgage loans for purchase of a new home was up by seasonally adjusted 0.9% and 3% from the same time in the previous year.

When the mortgage rates were down at their record low levels, home sales were also at peak levels in Gwinnett Co. and everyone declared that there had never been a better time to finance a home. Now that the mortgage rates are rising in and around Gwinnett Co., experts are wondering about the impact it might have on the housing market.

 

If you’re thinking of Buying home the time to act is NOW .. and Sellers dont wait to see if home values will continue to raise as buyers my not qualify for higher priced homes matched with higher interest rates and inventory could raise

 

Impact of Rising Interest Rates

Impact of Rising Interest Rates in Gwinnett Co

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