Monday, September 2, 2013

New York to Seattle Buyers Tap Brakes After Rates Rise $HD $KBH $ITB


New York to Seattle Buyers Tap Brakes After Rates Rise $BZH

Amy and Ted Wilder lost out in the bidding for several Seattle-area homes during the past six months, even with offers well above the asking price. After May’s sudden spike in mortgage rates, the Microsoft Corp. consultants put their search on hold.

Home-loan applications for purchases have declined 14 percent since the start of May when interest rates surged by the most in two decades, according to the Mortgage Bankers Association, and price appreciation has slowed, albeit from the fastest pace in seven years.
The average rate on a 30-year, fixed-rate purchase loan has risen to 4.51 percent from a record-low 3.31 percent in November, according to McLean, Virginia-based Freddie Mac, as the Federal Reserve said it’s planning to wean the economy from its record stimulus.
Higher rates mean that on a $400,000 conventional mortgage, monthly payments would be about $275 more. Rates on jumbo mortgages, those too big for government programs, have climbed to 4.69 percent from 3.88 percent at the beginning of May.

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