I hate to tell you I told you so, but I told you so! Interest rates are are the move and those of us that invest with lease options are positioned to profit heavily! Why?
1. People will be priced out of the home buying market, thus seller's will be extremley opened minded- more than usual.
2. People who can't buy will have 2 choices: 1. traditional rent situation or 2. Lease Options.
Now is the time to get involved in lease options! Enjoy the article.
James Gage
AP
Rates on 30-Year Mortgages Jump
Thursday June 14, 11:42 am ET
By Martin Crutsinger, AP Economics Writer
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Rates on 30-Year Mortgages Jump to the Highest Level in 11 Months
WASHINGTON (AP) -- Rates on 30-year mortgages rose for a fifth straight week, hitting the highest level in 11 months as prospects dimmed further for possible rate cuts from the Federal Reserve.
Mortgage giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.74 percent this week. That was up from 6.53 percent last week and marked the biggest one-week rise in 30-year rates in more than three years.
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The five consecutive increases have pushed 30-year mortgages to their highest level since they were at 6.80 percent for the week ending July 20, 2006.
"Mortgage rates moved sharply upward this week," said Frank Nothaft, Freddie Mac's chief economist. "These moves parallel rising yields on Treasury securities as concerns about inflation pressures and continuing strength of consumer and business spending have dimmed hopes for an interest rate cut."
The benchmark 10-year Treasury bond hit a five-year high of 5.295 percent on Tuesday, sending tremors through Wall Street as investors worried that rising interest rates could further depress the housing sector and also harm corporate profits.
All mortgage rates tracked by Freddie Mac showed increases this week.
Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing, rose to 6.43 percent, up from 6.22 percent last week.
Five-year, adjustable-rate mortgages averaged 6.37 percent, up from 6.24 percent.
One-year, adjustable mortgages rose to 5.75 percent, up from 5.65 percent last week.
The mortgage rates do not include add-on fees known as points. Thirty-year and 15-year mortgages each carried a nationwide average fee of 0.4 point. Five-year, adjustable mortgages carried a fee of 0.5 point while one-year ARMs had a fee of 0.7 point.
A year ago, rates on 30-year mortgages stood at 6.63 percent, 15-year mortgages were at 6.25 percent, five-year adjustable-rate mortgages averaged 6.23 percent and one-year ARMs were at 5.66 percent.
