If you’re interested in a Miami Beach Home for sale and are curious about how rate changes may affect your Miami Beach home buying experience, you are not alone. For Miami Beach real estate buyers and investors, higher rates may result in adjustments needing to be made on the amount of loan you qualify for, it is important then that an individual assessment is done with a lender, to find the options available for your Miami Beach home.
Despite the drop in inventory of prime Miami Beach luxury homes, we’re continuing to see a boost in demand for Miami Beach waterfront homes, especially real estate in the Miami Beach Island communities such as Palm Island Miami Beach homes. Mortgage rates options for those who want to Buy Miami Beach homes for sale is still a hot discussion topic in the Miami Real Estate Market. It is evident that buyers and sellers are looking closely at mortgage rates to determine their options of buying or selling a Miami Beach Single Family home. Recent rates released in the Primary Mortgage Market Survey(R) (PMMS®) continued to come in relatively high nationwide, due to market speculation that the Federal Reserve may reduce future bond purchases in response to June’s strong employment report. This doesn’t mean that its not a good time to buy a Miami Beach luxury home, but consideration can be taken to see how these increases may affect you.
According to Frank Nothaft, vice president and chief economist of Freddie Mac, “June’s strong employment led to more market speculation that the Federal Reserve will reduce future bond purchases causing bond yields to rise and mortgage rates followed.”
An average 4.51% with a .8 point was seen with the 30-year fixed-rate mortgage (FRM), an increase from the previous week’s 4.29% and well above last July’s 3.56%.
The 15-year FRM rose to 3.53% with a 0.8 point, from 3.39% and the average of 2.86% in July 2012.
Slight increases were seen on the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) as well, which averaged at 3.26% with a average 0.7 point, versus the 3.10% rate last week and 2.74% one year ago.
Surprisingly, the 1-year Treasury-indexed ARM remained unchanged since last week, with an average 2.66% (average 0.5 point), which was very similar to the July 2012 rate of 2.69%.
View week to week comparisons for 2013 by visiting FreddieMac.com.