Paradise Valley Weekly 268th Edition - June 12, 2015
There are two noteworthy developments in the mortgage market this week:
1. Rates are rising. The average on the 30 year fixed mortgage has broken above 4% for the first time this year. Most economists are forecasting higher rates over the next year. To be fair, though, a lot of pundits have been forecasting higher rates for years now.
The biggest this is having is bringing out a rush of buyers. People who plan to buy with a mortgage are worried this their last opportunity to lock in great rates.
Since PV buyers are more often cash buyers than other places, it won't impact us quite as much. But it will have some impact, and given the competition we've seen for quality homes, it doesn't take much of an increase in demand to have a substantial impact.
2. Jumbo lending continues to get more competitive and creative. It used to be that jumbo loans were a lot more expensive than conforming loans, but that's no longer the case at many financial institutions. According to this report in the Wall Street Journal, the options for mortgages in the $4 million+ market are better than they've ever been.
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