Mortgage rates slip again as mortgage applications surge nearly 27% in one week...today they are varying between 3.2 to 4%--depending on the program that fits your needs.

So is now a good time for you to a buy a home?Our opinion is the best decisions are made based on your needs, and we are always available to help you review and develop a plan to reach your real estate goals. Based on your current phase of life consider how much space do I need for my day to day living, and do I need space for guests or to entertain? Consider, will I be growing my family? Look at what different areas have to offer and what location will best support your needs to commute while balancing what you like to do in your free time. We often help our clients determine what style of home and what location will help them best enjoy each and every day. 

So instead of waiting for the market to take a plunge, people who are serious about buying a home should financially prepare themselves now to reach their real estate goals. “Price dynamics will differ by market, but most markets are unlikely to see significant price erosion this year – they just won’t see significant price appreciation either,” McBride says.  I like what Greg McBride, CFA, Bankrate’s chief financial analyst has to say, “The right time to buy a house is when you are financially prepared to do so, your life circumstances are supportive of buying, and you find the right home at the right price. Waiting can help build a better financial foundation but offers no guarantees of future market conditions.”  

The benchmark 30-year fixed-rate mortgage fell last to week to 4.04 percent from 4.06 percent, according to Bankrate’s weekly survey of large lenders. With rates moving closer to 4 percent, or slightly under depending on the loan program, refinance and new application activity is reaching a three-year high. 

Over the past 52 weeks, the 30-year fixed has averaged 4.64 percent. This week’s rate is 0.60 percentage points lower than the 52-week average.

• The 15-year fixed-rate mortgage fell to 3.38 percent from 3.41 percent.

• The 5/1 adjustable-rate mortgage fell to 3.67 percent from 3.74 percent.

• The 30-year fixed-rate jumbo mortgage rose to 4.11 percent from 4.10 percent. 

At the current 30-year fixed rate, you’ll pay $479.72 each month for every $100,000 you borrow, down from $480.88 last week.
At the current 15-year fixed rate, you’ll pay $709.00 each month for every $100,000 you borrow, down from $710.47 last week.
At the current 5/1 ARM rate, you’ll pay $458.59 each month for every $100,000 you borrow, down from $462.55 last week.

What are the professional's opinion on where rates are heading....

25% of Experts say rates will be going up.

Greg McBride, CFA

Senior vice president and chief financial analyst, Bankrate.com

Whether induced by better-than-expected economic data or a more complacent-than-expected Fed, bond yields and mortgage rates will rebound a bit from current levels.

Joel Naroff

President and Chief Economist, Naroff Econoimcs, Holland, Pennsylvania

Rates will go up. The approaching summit provides false hope on an agreement.

Les Parker

Senior vice president of LoanLogics, Trevose, Pennsylvania

Here’s a parody based on the instrumental song “Frankenstein” by The Edgar Winter Group: “How did G-4 create a Frankenstein? The Fed and the major central banks scare the markets with hurts of dread. Trump tweets threats, and markets watch for action.”

Greg McBride, CFA

Senior vice president and chief financial analyst, Bankrate.com

Whether induced by better-than-expected economic data or a more complacent-than-expected Fed, bond yields and mortgage rates will rebound a bit from current levels.

Joel Naroff

President and Chief Economist, Naroff Economics, Holland, Pennsylvania

Rates will go up. The approaching summit provides false hope on an agreement.

Les Parker

Senior vice president of LoanLogics, Trevose, Pennsylvania

Here’s a parody based on the instrumental song “Frankenstein” by The Edgar Winter Group: “How did G-4 create a Frankenstein? The Fed and the major central banks scare the markets with hurts of dread. Trump tweets threats, and markets watch for action.”

42% say rates will go down

Robert A. Brusca

Chief economist, Fact and Opinion Economics, New York

Rates will fall.

Dick Lepre

Senior loan officer, RPM Mortgage, San Francisco

The short-term is technically mixed, but be prepared for lower rates in the next few months. The techs are very bullish (higher prices, lower yields), and we are headed for a 1.8 percent 10-year Treasury note.

Logan Mohtashami

Senior loan officer, AMC Lending Group, Irvine, California

Rates will remain unchanged. Next up to bat is the G20 summit, which puts America and China trade-war talks center stage. I would keep that date in mind to see if we break above 2.21 percent. For us to break under 2 percent now we would need weaker global and domestic PMI data or stocks to sell off. We had a lot of panic bond-buying from 2.33 percent to 2.04 percent, so we might be here in the bottom channel for some time until we get clarity.

Jim Sahnger

Mortgage planner, C2 Financial Corporation, Palm Beach Gardens, Florida

I expect rates to slightly improve following continued uncertainty surrounding trade talks. Inflation continues to remain tight, confirmed by tepid CPI and PPI readings this week. Odds makers now have a July rate cut by the Fed at better than 80 percent. The stock markets have been on quite a run this month, with gains of nearly 5 percent in the S&P to over 8 percent in the Nasdaq and are due to pull back a bit. When they do, bonds should get some of that trade and benefit. Remember, this is about rate cuts from the Fed, though they do not directly correlate to declines in mortgage rates. Between August 2007 and the end of 2008, the Fed cut fed funds by 5 percent. Mortgage rates declined, but only about 1.25 percent in the same period.

Shashank Shekhar

CEO, Arcus Lending, San Jose, California

After dipping to a 16-month low, mortgage rates remained mostly stable last week. However, with lower inflation numbers and even talk about Fed cutting rates later this year, mortgage bonds will continue to get a boost. Expect the rates to trend lower this week, albeit not significantly.

33% say rates will remain unchanged

Michael Becker

Branch manager, Sierra Pacific Mortgage, White Marsh, Maryland

Treasury yields and mortgage rates finally ended their winning streak on Monday as they bounced slightly higher on news from President Trump that he was not going to move forward with tariffs against Mexico. The bounce higher could have been much worse given how much rates dipped on news of the tariffs. I think markets are starting to realize that the economy is slowing and that inflation will not be an issue for quite a while. The weak employment report of last week and this week’s Producer Price and Consumer Price indices support that realization. Looking forward, I think markets will be in a wait-and-see mode as to what the Fed will do at next week’s meeting, and we won’t see much movement in rates until after that. Mortgage rates will be flat in the coming week.

Derek Egeberg

Certified mortgage planning specialist and branch manager, Academy Mortgage, Yuma, Arizona

Look for rates to remain relatively stable this week.

Nancy Vanden Houten, CFA

Senior economist, Stone and McCarthy Research Associates, New York

Rates will stay the same.

Elizabeth Rose

Certified mortgage planning specialist, AmCap Home Loans, Plano, Texas

Mortgage rates have dropped to the best levels since September 2017. Trade talks continue to influence the markets. In addition, inflation continues to remain tame, which is good for mortgage rates. However, this recent rally has slowed and could come to an end soon. Mortgage bonds are in a range that could keep mortgage rates relatively unchanged for the coming week.

So whether you are thinking of buying or selling a home in the near future, or making long-term plans for the years to come, we are available to help and support you in setting your goals and making a plan to get there. Just reach out to us anytime.

The Benadum & Bumpus Team

Amy Bumpus

Straight Talk—Always

614-657-2005 (Talk or Text)

*Data obtained from the Bankrate Mortgage Rate Trend Index: June 12, 2019, Natalie Campisi and Deborah Kearns.