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Clovis Mortgages and Home Financing
December 28th, 2009
Clovis Mortgages and Home Financing
Interest Rates Predicted to Reach 6%
It’s a great time to buy a Clovis, CA home. The medium home price of Clovis homes for sale is less than $250,000. Better yet, low Clovis interest rates make Clovis homes more affordable than ever. At least for now. According to many leading mortgage experts, low mortgages and affordable housing payments are about to go up dramatically.
According to the Wall Street Journal, the average 30-year fixed mortgage is 5.05%. Soon these historically low rates will begin creeping up, according to Greg McBride, chief economist at Bankrate. Echoing this steady increase in mortgage rates is Fraddie Mac leading economist, Amy Crew Cutts, who predicts interest rates will hit 6% by the end of 2010.
An increase in Clovis mortgage rates means Clovis homes will become less affordable and mortgage payments will skyrocket in the new year for Clovis home buyers. For example, a $300,000 Clovis home with a 6% interest rate is nearly $200 more a month than buying the same Clovis house today when rates are only at 5%.
In other words, low interest rates are just as important to consider when buying a Clovis home as the price of the home itself. Unfortunately, even Clovis home prices are expected to go up in 2010. According to the California Association of Realtors, California home prices will increase 3% in 2010.
Clovis Mortgage Rates
What are the signs that morgtage rates are about to go up? Mark Roth of BusinesWeek.com offers several tips of when interest rates are about to rise:
- Read the minutes of the Federal Reserve. The Federal Reserve will comment on its policy and whether inflation or a weaker economy is the greater risk. Rates tend to rise when inflation becomes more of a risk to the economy.
- Declining Unemployment. The unemployment rate is at 9.8%. If more Americans find jobs, an increase in interest rates is likely.
- Rising Discount Rate: The rate the Fed charges banks that borrow from it directly stands at .5%. If it rises, or the spread between it and the Federal Funds Rate widens, then mortgage rate increases won’t be far behind.
Clovis Mortgage Help
We don’t recommend anyone attempt trying to time the Clovis housing market or mortgage rates. No one can do that. What you can do, however, is lock in some of the best Clovis home prices and mortgage rates in history.
As the chart above indicates (click on it to make it larger), these rates won’t last forever. Why not take advantage of low mortgage rates now? Whether you’re new to mortgages or an old pro, Mortgage Planner, Kathy Tuck, can help you get the mortgage you need to buy your next home. Kathy can:
- Get you pre-approved for a home loan (the 1st step in buying a home). Get started NOW!
- Discuss the latest loan programs and lowest Clovis mortgage rates available.
- Answer all of your home Clovis mortgage or financing questions.
Kathy Tuck
iMortgage, Mortgage Planner
(559) 284-4020 (cell)
(866) 933-7856 (fax)
kathy.tuck@imortgage.com
Clovis Realtors
If you’re thinking about selling or buying a Clovis, CA home let us know. At Clovis Real Estate we’re Clovis Realtors who specialize in Clovis homes. Browse through our website where you can search all Clovis homes for sale and find a wealth of information on selling or buying a Clovis home. Why not become a client today and let the Clovis Experts help you buy your next Clovis home?
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