Dallas Home Appraisals News and Information

Mortgage rates ticked up slightly to end the week, according to a Primary Mortgage Market Survey released today by Freddie Mac.  Rates on 30-year fixed-rate mortgages averaged 4.87% with an average 0.7 point, up from last week's 4.78 average.  That is still significantly lower than the average in April of last year of 5.88%.  Another survey conducted this week by Bankrate.com showed 30-year fixed rate mortgages at 5.2%.

The Mortgage Bankers Association reports that since the end of February, applications for home purchases had increased by 22% and a staggering 129% increase in refi apps.  That explains the wait times when calling into the mortgage department of almost any big lender!  In other positive news today for housing, Wells Fargo announced that it expects earnings of $3 billion for the first quarter of 2009, a direct result of the collapse in competition in banking and the refi boom stimulated by the government's purchase of mortgage bonds that has driven interest rates so low.  Mortgage originations at Wells hit $100 billion, with most of that covering refinances.  (Click here to read the article at CNNMoney.com).

So what does all this mean for mortgage rates?  It was expected that a sustained increase in refi's would keep rates from going any lower, and with the stock market showing overall gains for the past 4 weeks that has also played a part in keeping rates from moving down.  Still, if you've saved up a downpayment (anywhere from 3% - 20% or more), and especially if you haven't purchased a home in the last 3 years (making you eligible for the $8,000 tax credit if you buy before December 1, 2009) - now is a great time to buy!  And, if you plan to stay in your home for a couple to several more years it is also a great time to refinance (the benefit of refinancing is in part dependent on the cost of the new loan and how many years it will take to recoup).

Another group that might benefit from refinancing now, beside those in the above categories or those with adjustable-rate-mortgages, are those who want to reduce the years left on their loan and the interest they'll ultimately pay (especially if you plan to stay in the house long enough to pay off the loan).  While you can arguably pay your mortgage off early by simply making extra payments to principal each year, depending on your current rate and how many years are left on your loan you might be able to get a 10- 15- or 20-year loan without significantly increasing your monthly payments.

Please contact us at Blue Star Appraisals Inc. if you have questions about mortgage rates or refinancing and let us put you in touch with a broker or lender who can guide you through the process.  If you have questions about the current value of your home in connection with property tax assessments, PMI removal, preparing to sell or remodel or for any other reason, call us today for a free consultation regarding a professional appraisal.