This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Most of Us Know It's a Good Time to Buy, But Only Half See Easy Mortgages

NEW YORK ( TheStreet) -- Mortgage interest rates fell back last week after 30 days of upward momentum.

The question homebuyers and real estate agents are asking is: Where will mortgage rates go now?

For the week, 30-year fixed mortgage rates fell from 4.55% to 4.44%, according to the BankingMyway.com Weekly Mortgage Rate tracker.

Fifteen-year fixed-rate mortgages also fell, from 3.77% to 3.61%, while five-year adjustable rate mortgages slid from 3.38% to 3.23%.

Economists say rates have fallen over hints from the Federal Reserve that it might ease up on its mortgage bond purchase program, which has helped keep mortgage rates low.

Fannie Mae (FNMA) offers some guidance on the issue with its June National Housing Survey.

In it, Fannie Mae surveyed 1,000 Americans on their views on homeownership, home prices and mortgage rates. In the survey, 57% respondents expect mortgage rates to rise over the next 12 months -- that's up from 46% in the May survey, and it's the highest number in the three-year history of the survey.

In addition, 57% of survey respondents expect home prices to rise, with 72% of Americans saying it's a good time to buy a home.

In a way, FNMA says, potential homebuyers are in a race to buy a home before mortgage rates and home prices rise too high.

"The spike in mortgage rate expectations this month seems to have had an impact on a number of the survey's indicators and may increase housing activity in the near term by driving urgency to buy," said Doug Duncan, senior vice president and chief economist at Fannie Mae. "Consumers may recognize that today's still-favorable mortgage rates and homeownership affordability levels will recede over time. Given rising home and rental price expectations and improving personal financial attitudes, more prospective homebuyers may be deciding that now is the time to get off the fence."

Fannie Mae provides some additional consumer sentiments related to the housing sector, and the economy in general:

  • 46% of Americans say their personal financial situation will improve over the next year -- the highest level since 2010.
  • 26% of Americans report their household income is up -- a 6% rise from last year.
  • 47% of respondents say it would "easy" for them to get a mortgage this year.

Clearly, the FNMA survey indicates Americans are more bullish on the economy, and on their own personal financial situation. That said, many respondents seem to think the economy is in a "sweet spot" right now, with home prices and mortgage rates at reasonable levels.

Americans expect home prices and mortgage rates to trend higher, as the housing market moves out of that sweet spot, and into more expensive territory.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
FNMA $2.94 -2.97%
AAPL $128.54 -0.63%
FB $80.90 1.63%
GOOG $573.37 -0.05%
TSLA $202.44 1.44%

Markets

DOW 18,096.90 -106.47 -0.58%
S&P 500 2,098.53 -9.25 -0.44%
NASDAQ 4,967.1410 -12.76 -0.26%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs