There’s some really great news in this week’s Mortgage Market Update! Foreclosures fell to the lowest levels since ’07, meaning more homeowners are keeping up with their payments and fewer markets are getting overwhelmed with distressed inventory – it’s a win-win! We’ll also take a look at where current mortgage rates are trending and where they’re likely to go in the coming weeks.
Mortgage Rates At-A-Glance
- Currently Trending: IMPROVING
- 7-Day Forecast: Neutral to Worsening
- Volatility: Fairly High
Foreclosure Rates Lowest Since 2007
Fewer homeowners are getting behind on their mortgage payments, as recent reports reveal that U.S. foreclosures dropped 23 percent in March from a year ago. This information comes from RealtyTrac, a housing and foreclosure tracking firm.
Not only are foreclosures levels getting lower, home prices and employment figures are improving, making this spring one of the most promising real estate seasons we’ve seen in a long time. If you’re venturing into the market this spring, know that there are plenty of great opportunities for homeownership – but there are also a few challenges. Limited inventory is still a major factor in several markets, making buyer competition pretty fierce. Also, the average number of days on the market seems to be shrinking in several parts of the country, which means interested buyers shouldn’t wait too long before getting preapproved and putting in their offer, or someone else could swoop in and snag their dream home.
Real estate agents working with buyers this spring should encourage their clients to do the appropriate legwork well in advance. Get that preapproval letter before beginning the home search – that way you’ll carry more clout as a prospective buyer.
Why Mortgage Rates Change
Mortgage lenders base their interest rates on a couple of different factors, but the primary influence comes from the prices of Mortgage-Backed Securities (MBS), which are traded on the bond market throughout the day. Since MBS pricing can change throughout the day, mortgage rates and fees can also adjust up or down at various times. They can also be affected by a variety of economic or political events – even events that do not occur in the United States. Global events often trigger economic changes and the effects can be seen throughout the world.
The main thing to understand is that when MBS pricing goes up, it usually means mortgage rates will go down. Likewise, when MBS falls, mortgage pricing generally goes up. For more information about the rate market, contact your mortgage lending professional directly. If he or she has access to live trading screens during market hours, they will be able to offer real time information on the mortgage rate market and help you develop a strategy for locking in an affordable rate. Remember that not every mortgage professional has access to these trading screens, so if securing a low rate is important to you, you should make this one of the questions you ask when contacting potential lenders. Here at the Decker Group, we not only have access to this information, we offer personalized mortgage consulting to make sure our borrowers not only get the lowest rate possible, they also get a loan program that works with their individual goals.
Give us a call at (972) 591-3097 for your Texas home financing needs and receive a FREE rate quote.