Encompass Lending Group Blog

Homeowners who have yet to lock in low mortgage rates may be out of luck as the tax cuts in Washington take effect, the window is closing on such rates as low as 4 percent for a 30 year fixed mortgage.

Those in the market looking to buy now have to decide if they want to take what is available now or wait, which could be worse as rates may continue to rise. From last week loan applications has dropped 2.3 percent and purchase applications by 5 percent.

According to the Mortgage Bankers Association rates are at the highest in six months. 30 year fixed mortgage rates rose on average 0.18% and 0.23% on 15 year mortgages. By the senate approving tax cuts, investors are now selling treasury and government bonds, which is causing the rates to rise.

At the current moment rates are still at an all time low, so purchasing a loan now might be the best chance, even for those in adjustable-rate mortgages. According to the Boston Globe those looking to refinance could see a dramatic change as rates change by half a point. The average price of waiting, about 50 dollars a month.

As rates go up and down once mortgage lender you can trust is Encompass Lending of Katy, Texas. Call our office today to receive a quote on loan refinancing rates and home loans.