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Mortgage Rates Drift Up

May 29, 2008

If you’re wondering when the market will hit bottom and looking for the absolute optimum time to buy real estate, we may already be leaving that fabled land.  As someone recently said to me, “the only way you know if you’ve hit the bottom of the market is when you’re on the way out.” 

There are many “doom and gloomers” out there, but this is still a fabulous market in which to buy real estate.  Following is an excerpt from a CNN article that talks about the observation that mortgage rates have begun to rise.  While the housing market may take another year (give or take) to recover, there seems to be little doubt among experts that now is the time to invest in real property.

(CNNMoney.com) — Rates on 30-year mortgages were pushed up this week above 6 percent amid growing concerns about inflation, mortgage backer Freddie Mac said Thursday.

Freddie Mac said 30-year fixed-rate mortgages averaged 6.08% with an average of 0.6 points, up from 5.98% last week. Last year at this time, the 30-year loan averaged 6.42%.

“Mortgage rates drifted up this week over market concerns that the Federal Reserve Board may raise short-term rates later this year,” said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement.

“Indeed,” Nothaft added, “market inflation expectations increased over the last few weeks and the federal funds futures market now has a 25 basis point rate hike priced in by the end of the year.”

Patty Cunningham
Coldwell Banker Preferred
Exton, PA
610-363-6006

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