Average Mortgage Rate Up Substantially

The national average mortgage rate is 4.46% this week for 30 year fixed-rate loans; it was 3.93% last week. 15-year rate average is 3.50%. Buyers should always investigate the possibility of a 15-year loan. In some cases a few more dollars each month can translate to thousands saved over the life of a mortgage.

Slow growth in consumer spending is keeping inflation at bay but as the economy improves it will be necessary to raise rates. (the opinion of this charlatan economist). What this means to you is; it is unlikely rates will be any more favorable than they are right now.  If you've been putting off refinancing or making a purchase, now is the time to make your move. 

BIG Spike in Month-Over-Month Home Value

The Case Shiller Value Index report for April was released today. Single Family Home value in South Florida shot up 2.41% between March and April.  The last time we saw an increase at this level was September 2005.  Savvy readers will recall that September 2005 was the peak of the boom that preceded the now-legendary bust in real estate and most of the rest of the economy.  I'm a bit wary of the numbers but not overly concerned yet since the toxic outside cause of the mid-decade boom (securitized mortgages) is not present this time.  So let's enjoy the recovery, make purchases quickly to take advantage of still-low mortgage interest rates....and tune in next month.