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Mortgage Rate Forecast For July 2008
Mortgage rates have been steadily increasing since mid May leaving fixed mortgage rates at their highest levels in 2008 for the beginning of July. However, a few surprises were released that show signs of recovery in the housing market that may help stabilize mortgage rates if inflation does not get out of control.
According to Freddie Mac’s Primary Mortgage Market Survey the 30 year fixed mortgage rate will begin the month of July at 6.45 percent, while the 15 year fixed mortgage rate will open at 6.04 percent. Both the 30 and 15 year fixed mortgage rates are at their highest levels this year and are approaching new highs in over a year if they continue to increase like they did in June.
The 5 year adjustable mortgage rate opens the month at 5.99 percent while the 1 year adjustable mortgage rate opens at 5.27 percent. The 5 year ARM is at its highest level for the year while the 1 year ARM is at its highest level since May of this year.
The housing market has shown some signs of recovery with 8 out of 20 cities on S&P-Case Shiller® composite index showing positive monthly growth in April. According to the Commerce Department, May’s median home sales price increased from the previous month. Howevery, these numbers may be tied to the fact that home buying season is in full swing.
July should be a strong month for home sales throughout much of the nation as many potential homebuyers begin to realize that waiting much longer could cost hundreds of thousands of dollars on the purchase of a new home.
Fixed mortgage rates should stabilize throughout the month, and we might even see slight decreases throughout the month. 30 year fixed mortgage rates should average around 6.30 percent throughout the month while the 15 year fixed mortgage rates should average around 5.75 percent throughout July 2008.
Adjustable mortgage rates will remain very unstable throughout the month of July with every new mortgage related report that comes out. Expect ups and downs of 0.25 percent either way throughout the month.
The Federal Reserve continues to keep a close eye on inflation and is ready to act abruptly if need be. If inflation does rear its ugly head throughout the month you can throw the predictions above out the window and prepare for another month of rising mortgage rates.
Mortgage rates have been steadily increasing since mid May leaving fixed mortgage rates at their highest levels in 2008 for the beginning of July. However, a few surprises were released that show signs of recovery in the housing market that may help stabilize mortgage rates if inflation does not get out of control.
According to Freddie Mac’s Primary Mortgage Market Survey the 30 year fixed mortgage rate will begin the month of July at 6.45 percent, while the 15 year fixed mortgage rate will open at 6.04 percent. Both the 30 and 15 year fixed mortgage rates are at their highest levels this year and are approaching new highs in over a year if they continue to increase like they did in June.
The 5 year adjustable mortgage rate opens the month at 5.99 percent while the 1 year adjustable mortgage rate opens at 5.27 percent. The 5 year ARM is at its highest level for the year while the 1 year ARM is at its highest level since May of this year.
The housing market has shown some signs of recovery with 8 out of 20 cities on S&P-Case Shiller® composite index showing positive monthly growth in April. According to the Commerce Department, May’s median home sales price increased from the previous month. Howevery, these numbers may be tied to the fact that home buying season is in full swing.
July should be a strong month for home sales throughout much of the nation as many potential homebuyers begin to realize that waiting much longer could cost hundreds of thousands of dollars on the purchase of a new home.
Fixed mortgage rates should stabilize throughout the month, and we might even see slight decreases throughout the month. 30 year fixed mortgage rates should average around 6.30 percent throughout the month while the 15 year fixed mortgage rates should average around 5.75 percent throughout July 2008.
Adjustable mortgage rates will remain very unstable throughout the month of July with every new mortgage related report that comes out. Expect ups and downs of 0.25 percent either way throughout the month.
The Federal Reserve continues to keep a close eye on inflation and is ready to act abruptly if need be. If inflation does rear its ugly head throughout the month you can throw the predictions above out the window and prepare for another month of rising mortgage rates.
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Submitted by admin on 6/28/08 |