Real Estate Watch
Latest news from Freddi Mac is that Mortgage Interest rates are on the rise again. The 30 year fixed rate mortgage increased to 4.19% for the week ending January 26, 2017 up from 4.09% the week before. This has affected the refinance market. The result of the rise will according to Morningstar,
“In the benign U.S. interest rate environment of recent years, the rapid pace of prepayments arguably has played a role in containing defaults.”
It is suggested that with rising rates there will be an increase in defaults. Morningstar suggests that mortgages with LTV Ratios below 60% and interest rates under 6% will show the biggest drop in prepayments as fewer people refinance.
While Home Sales dropped in December the Median sale price increased from $305,400 to $322,500.00.
Sales have also dropped off in the market place amid limited Supply.