by Myles Biggs
CNN Money recently
announced that 30-year, fixed-rate home loans have increased this week by 0.53
percentage points to an average of 4.46%. According to Freddie Mac, this is the
largest weekly increase in more than 26 years.
Rates for 15-year loans, a popular option for those home owners
looking to refinance, also increased to 3.5% - a jump of 0.46 percentage
The graph above shows the stark increase in mortgage rates
that has taken place over the past two months. This percentage point increase
will cost home buyers with a 30-year, fixed-rate mortgage an extra $56 more per
month for each $100,000 borrowed.
While this news of increased mortgage rates is cautionary to
some, it also comes on the heels of news from the S&P/Case-Shiller home
price index that showed an approximate 12% increase in new home prices when
compared to one year ago. New home sales also hit a five-year high in May.
When mortgage rates soar, the time-saving advantages home
buyers receive from building a Ritz-Craft modular home become even more apparent.
By building homes indoors and at the same time that outdoor site work is
completed, overall construction time is reduced, resulting in fewer loan cycles
and fewer interest payments for the home owner.
The news of increased mortgage rates has split the public into
two schools of thought – those who believe this increase in mortgage rates
could derail the housing recovery and those who believe these increases are
signs of a normal housing recovery.
What is your outlook? Share your thoughts in the comments