A year ago the news was that the mortgage rates were going to go up but it never happened in 2014 and the folks buying homes could get really good rates on their mortgages. Now in 2015 we are hearing again an even more solid information that Mortgage rates will begin to rise in 2015.
The Labor Department issues its Jobs report on a monthly basis and the numbers in recent months have indicated the economy is posting some of its strongest job gains in years. That is great news for the US economy after years of moderate to no growth. However, what is good for the economy often is not good for mortgage interest rates.
Homeowners who have mortgage rates higher than prevailing market rates may be missing out on a prime opportunity to put their family in a much more favorable long term financial position. Sometimes these opportunities don’t present themselves very often and right now with mortgage rates hovering near their all-time lows it’s a great time for homeowners to take advantage of the opportunity to lower their interest rate and their mortgage payment.
The Labor Department on Friday issued it’s monthly non-farm jobs report with another strong report showing strength taking hold in the economy. Employers added 295,000 workers in February which also caused the unemployment rate to drop. The data was positive in almost every area, except for wage growth which still has remained stubbornly steady.
With the spring home buying season upon us now is the time for prospective home buyers to make their home financing plans among the many options available. Hopefully home buyers have spent the winter evaluating neighborhoods, learning about area schools and driving neighborhoods where they may want to live. Now comes the time to decide how to pay for that dream home.
FHA home loans have been very popular among first time home buyers since the collapse of the mortgage industry. The reason why the loan is popular is because FHA loans are accompanied by low mortgage rates and some of the least stringent underwriting guidelines. However, the biggest drawback to FHA loans over the past few years has been the high cost of mortgage insurance.