Low Mortgage Rates May Rise

Mortgage Rates Are Still Low At The Close of 2012

If you have been in the market to purchase a new home, or refinance your current mortgage, take advantage of the current low mortgage rates available while they last. With continuing positive signs in the housing industry, mortgage rates may start to rise again in 2013.

According to HUD and the U.S. Census Bureau, home sales of newly constructed single-family residences reached an increase of 4.4% in November, while showing a 15.3% increase over last year‘s numbers.

While this is great news for the housing industry’s road to recovery, it does mean that home inventory is declining, so if you are planning on purchasing a new home, the options will be less. This also means that as the housing industry continues to improve, mortgage rates will start showing an increase.

Currently in New Jersey, the average sale price of a home has shown a decline month over month, quarter over quarter and year over year, and the overall average of homes sold is at $260,400 as of November 2012. Mortgage rates are sitting at an average of 3.26% for 30 year fixed rate mortgage loans, whereas 15 year fixed rate mortgages are at an average of 2.57% and 5/1 adjustable rate mortgages are sitting at a 2.55% average nationally.

These are still relatively low rates and for current homeowners, taking advantage of mortgage refinancing at this time is still a great idea.