According to recent housing report from the Federal Housing Finance Agency, interest rates on conventional purchase-money mortgages are already starting to increase slightly as we continue to push through the busy spring season and approach the summer months.
While the rise in rates is hardly a surprise and has been widely expected by many real estate and mortgage professionals, those planning to buy a home sometime in 2015 might want to move forward sooner rather than later.
Numbers published by HOUSINGWIRE show that from February to March, the average interest rate on a conventional, 30-year, fixed-rate mortgage of $417,00 or less jumped 4 basis points from 3.91% to 3.95%, while the effective interest rate on all mortgage loans in March locked in at 3.95%, an increase that was 3 basis points higher than February’s rate of 3.91%.
One other figure that’s worth noting is that mortgage rates aren’t the only number on the rise when it comes to home loan financing, as the average loan amount for all mortgage loans was up $16,600 from $294,200 in February to $310,800 in March.
For those of us living in DFW, the spike in average loan amount is also hardly surprising, as the entire Dallas-Fort Worth market has been exceptionally hot to start off the year, with median home prices in the area now exceeding $200,000 for the very first time.
So with a limited amount of inventory and mortgage rates still expected to reach 4% or more before the end of the year, if you're planning to purchase a home somewhere in the DFW area, the time to do so definitely seems like right now.
To get in touch with one of our expert DFW real estate agents, give us a call today at (214) 764-4124, or start searching active Dallas-Fort Worth homes for sale now!