Mortgage rates hit five-week high
Spring and summer home-buying seasons in question with unpredictable market
CAPE GIRARDEAU, Mo. (KBSI) – Mortgage buyer Freddie Mac reported Thursday that the average on the benchmark 30-year rate rose to 6.32% from 6.12% last week.
The average rate a year ago was 3.92%.
Gunner Knudtson, a mortgage banker for Missouri First State Bank, says that if you are looking for a home, get one to purchase because of the benefits for the future.
“I’m always an advocate for home buying because you can always refinance a lot of those people that refinanced last year were you know who knows where they were within their loan life, but it dropped, and they took advantage of that,” said Knudtson.
Higher rates can add hundreds of dollars a month in costs for homebuyers on top of already high home prices.
Lori Fowler, co-owner of Area Properties Real Estate, says this is happening because the stock of housing is high.
“You know a lot of times it’s inversely related when interest rates go up sometimes home values tend to cycle down a little bit but home values have stayed pretty strong because of the lack of inventory,” said Fowler.
Knudtson says that doing some studying as a first-time buyer is important and for sellers as well.
“You know that what that roller coaster means and if you’re, if you know at this price point my monthly payment is going to be X or this is what I need to get in this kind of level home. If you have those criteria really nailed down that will improve you as a borrower,” Knudtson said. “So some people think like, ‘Hey I can just really max this out.’ Well you might see that you’re not getting a lot of bites on your home so a realistic value on your home I think is important.”