2010 was an historic year for mortgage interest rates as well as the Logan real estate market in general. Home prices were down, and so were mortgage interest rates. For a while, mortgage interest rates were the lowest they have ever been for 15 year fixed mortgages, 30 year fixed home loans, and adjustable rate mortgages. Mortgage interest rates got down into the 3’s, and were at rates we will probably never see again.
To end off 2010, mortgage interest rates began to rise. They are still incredibly low, but are higher than the record lows we saw during the third quarter. The Mortgage Bankers Association is predicting that interest rates will rise by about one tenth of a percent during 2011. First quarter projected 30 year fixed mortgage interest rates are at 5.2%, while fourth quarter rates are expected to be around 5.5%.
This means, that from an affordability standpoint you are best off to refinance rather than later. Home prices in Logan might continue to decline a bit more over the next few months, so if you’re buying with cash, you’ll probably be better off to wait before you buy. If you need to finance your home purchase, then from an affordability it will probably be a wash with home prices declining, but interest rates increasing. The best advice is to look for homes now and buy when you find a best one for your families needs.