SE Minnesota Real Estate News

The Markets. Rates continued their uptrend in past week. Freddie Mac announced that for the week ending December 16, 30-year fixed rates averaged 4.83%, up from 4.61% the previous week. The average for 15-year fixed rose to 4.17%. Adjustables increased as well with the average for one-year adjustables rising to 3.35% and five-year adjustables increasing to 3.77%. A year ago 30-year fixed rates were at 4.94%. Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac, "Market concerns over stronger economic growth that, in the near term, could lead to an increase in inflation have sparked a rise in bond yields and home loan rates have followed. For instance, the growth in retail sales excluding automobiles in November was twice that of the market consensus forecast. Industrial production showed the biggest gain in November since July, according to the Federal Reserve Board. And consumer sentiment, as measured by the Thomson Reuters/University of Michigan index, rose to a six-month high in December. As a result, rates for 30-year fixed loans this week were the highest since the week of May 20th of this year.  It is still economic to purchase a home with near historic low interest rates allowing for the lowest mortgage payments or a higher purchase price. 

Contact us at the Phillips Property Group to discuss your real estate goals and for mortgage lender recommendations.