What did interest rates do last week? 1/10/11

Thinking of buying your first home in Austin Texas or the surround Texas Hill Country/Highland Lakes areas?      Rates are still super low, so now is a great time to buy.

Get a First Time Homebuyer booklet or a booklet on Buying versus Renting.  Email:  sue@paragonpropertygroup.com

Visit our website for more information www.PPGTx.com

What Did Interest Rates Do Last Week?
** based on Freddie Mac weekly average survey **
 
30-yr Fixed – Slightly Lower
Last Week: 4.77%
Previous Week: 4.86%
1yr Ago: 5.09%

15-yr Fixed – Slightly Lower
Last Week: 4.13%
Previous Week: 4.20%
1yr Ago: 4.50%

Jumbo Fixed (Average 30-yr Fixed) – 5.125%

Are Rate Hikes Coming?

Are Rate Hikes Coming?

The last thing the struggling housing sector of the economy needs is escalating mortgage interest rates, however recent comments from Fed Chairman Bernanke have many traders concerned that rate hikes are on the way. Bernanke indicated the Fed would cut back and close emergency lending programs as the markets normalize. The reaction to these remarks was fast and furious as mortgage interest rates quickly rose higher.

While it is almost inevitable that the Fed will eventually raise rates, the question still remains is WHEN? Many took Bernanke’s remarks as a warning of things to come sooner rather than later.

Despite the recent rate increases last week rates remain historically very favorable. Lower rates are not guaranteed and floating in this environment is very risky.

What does this mean to you? It means that if you are thinking of buying a home and, particularly buying a home and using the Tax Credit for First Time Buyers, you need to act QUICKLY. Rates are likely to rise in the new year and the tax credit deadline for having a contract in place in April 30th, 2010.

Contact Paragon Property Group for more information about homes in the greater Austin area or in the Highland Lakes area including Marble Falls, Burnet, Kingsland, Granite Shoals, Sunrise Beach and Horseshoe Bay. There are many affordable homes out there...don't let this opportunity pass you by.

Isn't it time you owned your own home?