A sharp sell-off in the bond market is sending mortgage rates to the highest level in seven years.
The average contract rate on the 30-year fixed will likely end the day as high as 4.875 percent for the highest creditworthy borrowers and 5 percent for the average borrower, according to Mortgage News Daily.
Mortgage rates, which loosely follow the yield on the 10-year Treasury, started the year right around 4 percent but began rising almost immediately. They then leveled off in March and early April, only to begin rising yet again. Tuesday’s move follows positive economic data in retail sales, suggesting that newly imposed tariffs would not hit sales as hard as expected.
Outer Banks beaches are lauded for their consistent yet manageable waves and verdant landscapes. And you can count on OBX to deliver great summer weather. Plan on renting a cottage or condo – this will give you more space without being too far from the beach.
History drips from the Outer Banks: Here, aviators Orville and Wilbur Wright took their famous first flight (at Kill Devil Hills), the pirate Blackbeard fought his last battle (at Ocracoke) and the mysterious Lost Colony disappeared (where is anyone’s guess). But this chain of barrier islands off the coast of North Carolina – affectionately dubbed OBX – isn’t just for history buffs. Fishing, windsurfing and wildlife watching attract adventurous types, not to mention the 3,000 shipwrecks you can explore by scuba diving. Families gravitate toward the beaches, mini-golf courses and the North Carolina Aquarium at Roanoke Island.
Each island has its own charm: The old lighthouses, rugged dunes and secluded beaches in the south couple with vacation rentals, water sports and kitschy beach shops, such as the Stop-N-Shop Beach Shop, in the north, all to form a unique seaside destination. If you come to the Outer Banks expecting action, you’ll be disappointed. OBX is ideal for those looking to skip the overly touristy attractions and head straight for the unspoiled beaches. You won’t find big nightlife, but you will find an abundance of natural beauty. Beaches are more populated during the summer months, but with so many destinations spread out along the barrier islands, you likely won’t experience big crowds.
Hurry Do not wait any longer, only 6 homes remain now at Devonshire Place!
For sales information please contact:
Heather Sakers: Phone: (252) 599-6814
REALTOR, SFR Coldwell Banker Seaside Realty
Home prices in the U.S. rose in February with no sign of changing direction.
Standard & Poor’s said Tuesday that its S&P CoreLogic Case-Shiller national home price index reported a 6.3% annual increase in February, up from 6.1% a month earlier. Year-over-year prices have risen continuously for the past 70 months, since May 2012, according to David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones in a press statement. Over that time, the annual price increases averaged 6%, comparable to the time period between January 1992 and February 2007, when prices averaged 6.1% annually.
“With expectations for continued economic growth and further employment gains, the current run of rising prices is likely to continue,” said Blitzer.
Home prices in the U.S. started 2018 on the rise, outpacing the rate of economic growth.
Standard & Poor’s said Tuesday that its S&P CoreLogic Case-Shiller national home price index reported a 6.2% annual gain in January, down slightly from 6.3% in December. The 20-city composite rose 6.4% from a year ago, and after seasonal adjustment it posted a 0.8% month-over-month increase, beating analysts estimates of 0.6%. Low inventory of homes for sale continued to drive prices.
“Since the market bottom in December 2012, the S&P Corelogic Case-Shiller National Home Price index has climbed at a 4.7% real – inflation adjusted – annual rate,” said David M. Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones in a press statement. “That is twice the rate of economic growth as measured by the GDP. While price gains vary from city to city, there are few, if any, really weak spots.”
Seattle, yet again, led the 20-city index, up 12.9% in January from a year ago. Las Vegas and San Francisco followed, up 11.1% and 10.2%, respectively.
Blitzer noted that it will take 3.4 months to absorb homes for sale, far below the average since 2000 of six months and the high in July 2010 of 11.9 months. He also contributed price increases to low vacancy rates among owner-occupied housing.
“Currently, the homeowner vacancy rate is 1.6% compared to an average of 2.1% since 2000; it peaked in 2010 at 2.7%,” he said.
By Amanda Fung
Mortgage rates have climbed to the highest level in close to four years, according to data released Thursday.
The 30-year fixed-rate mortgage averaged 4.38% in the week ending Feb. 15, up from 4.32%, mortgage buyer Freddie Mac said.
A year ago, the benchmark mortgage averaged 4.15%.
The 15-year fixed-rate mortgage averaged 3.84%, up from 3.77%, and the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.63%, up from 3.57%.
The backup in rates has occurred on concerns about rising inflation pressure, with the latest increase coming after a stronger-than-forecast gain in consumer prices.
“Inflation measures were broad-based, cementing expectations that the Federal Reserve will go forward with monetary tightening later this year,” said Len Kiefer, deputy chief economist.
Fellow mortgage buyer Fannie Mae said it’s upped its 30-year fixed rate mortgage forecast for the fourth quarter by 30 points to 4.4%.
“However, we don’t expect rates to play much of a role in total home sales, especially with anticipated stronger disposable household income growth. The ongoing inventory shortages should continue to constrain sales despite otherwise ripe home buying conditions,” said Doug Duncan, Fannie’s chief economist, in a statement.
