30-Year Mortgage Rate Rises Above Record Low

Those who are looking to purchase a home may find their dream a little easier to obtain. The 30-year fixed mortgage rate rose to a new level of 3.95%. With recent lows and interest rates coming in at 3.5%, it left many wondering if the housing market would ever recover. Last week, these rates increased for the first time since May of 2010. The interest rates have been fluctuating and have hit all-time lows, but with the increase it leaves hope that things are financially improving, as far as the housing market is concerned.

When the mortgage rates are so low, lenders are less likely to mortgage those who have a score below a 640. The lenders can also be increasingly picky for those who are in the 600 range, because they need to know that this loan will not be another casualty of the housing market. In a good market, those with a 580 and above could purchase a home with no problems, even if it was with subprime lending. Rising rates are promising as it shows that recovery is beginning to take place.

While the 3.95% interest rate is on a national average, the Texas mortgage rates are staying around 3.6%. Since it is clearly a buyers’ market, those who are financially able to purchase can find great deals. Unlike many other states, Texas housing market has not been as drastically hit. While, no part of the country was unscathed, Texas is still moving houses. In the fourth quarter of 2011, the housing market showed a dramatic increase in homes being sold, versus other quarters. The fact that houses are still moving and rates are still good, make Texas a great place to make a purchase.

New homeowners are opting to look at other financing options, rather than that of the 30-year fixed mortgage rate. The 15-Year Fixed has become a popular option for first time home-buyers and those refinancing. The option of owning a home in fifteen years, rather than thirty is a lucrative selling point on these loans. The 15-Year Fixed usually has a lower interest rate, by a small margin, compared with that of a 30-year fixed mortgage. Because of the job market, people are more concerned about their futures that every before. While a person can afford the extra payment, it is smart to invest the money into the home and have the retirement security.

It is not secret that the job market in the entire country has been hit hard. With unemployment rates at all-time highs, it has affected everything, including the housing market. Young couples and those who are concerned about the golden years are option for the 15-Year Fixed and trying to get their houses paid off in record time.

While the 30-Year Mortgage is the only option for some who have financial restrictions, others are turning to new and inventive ways to plan for retirement. With the threat of the Social Security Administration eventually collapsing, it may be wise to find alternative measures to plan for the future.

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