As we have reported in the past two weeks,
mortgage rates
and bank interest rates
as dictated by The Fed have been trending upwards at a very controlled and
market-friendly pace. This trend is been the major contributor to
home purchase loan closings
staying strong throughout the United States.
For the uninitiated: Our economic growth has been dampened a bit by higher oil
and energy pricing. The side-benefit is that although we may be frazzled while
standing at the gas pump, we are calmed by the effect oil prices have had on
keeping rates
low.
Egos of economists who predicted an upset in the
mortgage rate market have been a
bit shattered as rates continue to defy their previous certainties. There has
been a very moderate upward trend in rates, which is good for all those
contemplating a home purchase mortgage
at the lowest rate available.
Another factor helping keep rates at bay is the fact that there are jobs being
added on a broader scale to the employment sector. This improvement in our labor
market creates a higher demand for
home purchase. Couple this with
low rate mortgage opportunity
and Americans are smiling, to say the least.
We predict that the
30 year fixed rate mortgage will continue its graceful elevation to around
6.4 percent by the end of the fourth quarter this year. To put it another way,
rates are going to remain at historic lows for the long term. A sigh of relief
for us worrisome investors and purchasers.
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