Aren't interest rates supposed to increase at the beginning of the year?

As long as I've been doing mortgages ( 21 years and counting ), I have witnessed interest rates climbing after the new year. There is always a rush of new business after the holidays with many new buyers calling to get prequalified to purchase a home. The powers that be from Wall street and Washington DC have come back from their two week vacations, and they are ready to get back down to the business of controlling the housing industry. As the market improves, the interest rates start to rise. This year is a little bit unusual in that the activity has increased, but the interest rates have had an inverse effect. They have dropped further from their already historic lows of 2011. Hopefully they will stay low for the short term so we can see some increase in real estate activity throughout 2012.

Andy Williams
President
Abacus Regional Mortgage
484 695 5972

ARE THINGS IMPROVING WITHIN THE ECONOMY?

This past month, lenders have been allowing Long-term rate locks. They are now allowing interest rates on new loans to be locked-in (guaranteed) for up to 120 days. These lock terms were changed to allow up to 60 days only, a few years ago. This is another sign of some softening in the mortgage market.

Andy Williams
President
Abacus Regional Mortgage nmls#118317
484 695 5972