Interest rates have jumped up in the last two weeks due to fears of inflation. Experts at MarketWatch.com have backed off their inflation concerns recently and are now predicting interest rates will inch back down in the next few weeks and months. If you thought you had missed your opportunity to jump on low rates when buying a Virginia Beach home…think again, but be prepared for the next dip. Here’s what you need to do to get your ducks in a row according to Market Watch:

1. Get started on paperwork. Once you’ve found the mortgage professional you’d like to work with, get started on the necessary paperwork, said Dan Green, loan officer with Waterstone Mortgage in Cincinnati and author of TheMortgageReports.com. Rates move regularly, and if paperwork has been started your file can be processed more quickly when rates hit a low. When you start the application process, your credit score will be pulled and you’ll need to submit support documentation including W-2 forms and pay stubs. You might be asked for updated documents nearer to closing.
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Buyer’s often find themselves watching a property for a price reduction. Although getting the best deal possible when purchasing Virginia Beach real estate is important, it is not the only factor that determines monthly payments on a home. Rising interest rates nearly diminish the positive aspects of waiting for prices to drop.

Most people are familiar with the basic trends in real estate that have been affected by the United States economic crisis. The listing prices of homes have been steadily declining over the past couple years. This has put people looking to purchase Virginia Beach real estate at an advantage over those trying to sell. People have best described this as a buyer’s market due to the low property prices and reasonable interest rates. However, the decline in prices is stabilizing while interest rates are beginning to inch up. It is becoming more and more popular for investors to make offers on properties, sometimes sweeping the property away from home buyers. Could buyers begin loosing their advantage? Today, properties that are correctly listed at a reasonable asking price are not being reevaluated and reduced as often. These are some of the factors that prove lower Virginia Beach real estate prices are not always worth the wait.

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Virginia Beach interest rates on a 30-year fixed-rate mortgage averaged 6.01 percent.

Freddie Mac released the results of its Primary Mortgage Market Survey®. Virginia Beach interest rates on a 30-year fixed-rate mortgage averaged 6.01 percent, down from last week when it averaged 6.05 percent. Last year at this time, the 30-year FRM averaged 6.15 percent.

“Recent remarks by Federal Reserve (Fed) officials, which partly bolstered optimism that financial markets will recover later this year, helped mortgage rates ease up a little this week,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Fed Chairman Bernanke indicated in a speech on May 13th that the Fed stands ready to continue to add liquidity to the markets. On the same day, San Francisco Fed bank president Janet Yellen added that she anticipates inflation will slow as commodity prices level off in the second half of the year.

“Despite the bleak housing market, there was positive news on the overall state of the economy. Retail sales (excluding automobiles) rose 0.5 percent in April, over twice that of market forecasts, and there was a significant upward revision in March’s figures as well. Also, the consumer price index for April rose less than expected, allaying some market concerns of inflation taking hold.”

The National Association of Realtors is also predicting a stablization in Virginia Beach real estate by mid-year, making this an excellent time to buy Virginia Beach real estate. You can view all Virginia Beach real estate for sale or have a list of new Virginia Beach homes for sale delivered to your Inbox.

Also read:  
Virginia Beach Real Estate – Mortgage Market Recap-May 5
Virginia Beach Mortgage Market Recap – April 22
Virginia Beach Mortgage Market Recap-April 14

Virginia Beach interest rates remained steady.

Freddie Mac today released the results of its Primary Mortgage Market Survey®in which Virginia Beach interest rates remained steady. The 30-year fixed-rate mortgage averaged 6.05 percent for the week ending May 8, 2008, down very slightly from last week when it averaged 6.06 percent. Last year at this time, the 30-year FRM averaged 6.21 percent.

“Despite a weak housing market, mortgage rates remained almost unchanged this week based on better-than-expected economic data releases that indicated the economy still has some staying power,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Job losses lessened in April and conditions in both the manufacturing and service industry outperformed market forecasts. Worker productivity also rose in the first quarter as increases in labor costs diminished.

“The housing market is still struggling amid falling house prices and stricter lending standards. Coupled with higher delinquency and foreclosure rates, a smaller share of families own their homes this year. The national homeownership rate held at 67.8 percent in the first quarter of 2008, down from its recent peak of 69.0 percent in the third quarter of 2006 and was the lowest rate since 67.6 percent in the second quarter of 2002, according to the Census Bureau.”

Experts predict the Feds cut in interest rates last week is the last cut we will see for awhile due to a fear of inflation. With Virginia Beach interest rates holding steady and no additonal cut anticipated, this is a great time to buy a home in Virginia Beach. Interest rates are near historical lows, prices are flat and sellers are negotiable. Search Virginia Beach homes for sale or get New Listing Alerts and recieve email notification of new homes for sale as they hit the market.

Inflation jitters caused Virginia Beach interest rates to inch up this week according the Freddie Mac Primary Mortgage Market Survey®. This week’s survey shows the 30-year fixed-rate mortgage averaged 6.03 percent with an average 0.3 point for the week ending April 24, 2008. This is up from last week when it averaged 5.88 percent. Last year at this time, the 30-year FRM averaged 6.16 percent.

“Average rates on mortgages increased across the board this last week as the most recent economic data raised inflationary concerns in the capital markets,” said Frank Nothaft, Freddie Mac vice president and chief economist. “For example, the Producer Price Index – a measure of wholesale inflation – increased 1.1 percent in March, nearly double the consensus expectations.”

This is a week to consult with your lender before locking in interest rates for your Virginia Beach loan. If you are still househunting, you can view all Virginia Beach homes for sale or get New Listing Alerts delivered to your Inbox.

Freddie Mac has released the results of its Primary Mortgage Market Survey® showing the Virginia Beach real estate 30-year fixed-rate mortgage averaged 5.88 percent for the week ending April 10, 2008. This is unchanged from last week when it averaged 5.88 percent. Last year at this time, the 30-year FRM averaged 6.22 percent.

The 15-year FRM this week averaged 5.42 percent with an average 0.4 point, unchanged from last week when it averaged 5.42 percent. A year ago at this time, the 15-year FRM averaged 5.90 percent.

If you would like more information about Virginia Beach real estate, visit our website, ButlerTeamHomes.com or give us a call at 866-222-0158 #550 for more personalized service. Interested in the current market value of your home? Visit VirginiaBeachHomeSellers.com. Your home valuation will be emailed to you.

Related Posts: Virginia Beach – Tighter Mortgage Insurance Requirements Coming

A few days ago, we posed the question, How The Interest Rates Slash Affects Virginia Beach Real Estate. Well, now we know!

Freddie Mac released the results of its Primary Mortgage Market Survey® in which the 30-year fixed-rate mortgage averaged 5.87 percent. Down dramatically from last week when it averaged 6.13 percent. Last year at this time, the 30-year FRM averaged 6.16 percent.

Now is the time to contact your lender and find how much Virignia Beach real estate you can purchase with these incredibly low rates! You don’t want to miss out on an opportunity like this. Don’t know a lender. Contact us and we are happy to refer you to a reputable, competitive individual.

It is a GREAT time to be buying a home in Hampton Roads. To learn more about Virginia Beach real estate, please contact us at 866-222-0158 #550 or visit ButlerTeamHomes.com. To begin searching for southern Virginia homes, please use our complimentary MLS search. 

Interested in knowing what your home is worth? Visit HRHouseValue.com.

How do rate cuts by the Feds affect your ability to buy Virginia Beach real estate?

Yesterday, the Feds slashed the federal funds interest rate (the ratebanks charge each other) by a bold 3/4 of a point, bringing the rate down to 2.25 percent, the lowest since late 2004. At the same time, the discount rate, the interest it charges to make direct loans to banks, was cut 3/4 of a point, pushing this rate down to 2.5 percent. These rate cuts are designed to lower borrowing costs and boost spending by consumers and businesses and thus increase economic activity. Full story.

How do rate cuts by the Feds affect your ability to buy Virginia Beach real estate? Often, rates on home loans drop prior to the announcement of a rate cut, in anticipation of the Feds decision. Then after the cut, rates often even go up a little. I found these rates posted on Union Mortgage Group’s site this morning….

The average interest last week on a 30-year fixed rate mortgage was 6.13%, according to the Freddie Mac survey. At first glance, interest rates to purchase Virginia Beach real estate have dropped considerably.

We are not mortgage lenders and certainly not experts on interest rates, but one thing we can recommend is if you are in the market to buy a home, call your lender and ask questions… Has the rate cut increased my buying power? Is it time to lock in the rate? Don’t have a lender? Contact us and we will refer you to a reputable and competitive lender who will answer your questions with no obligation. You can reach us at 866-222-0158 #550 or Info@ButlerTeamHomes.com or ButlerTeamHomes.com.

Search Virginia Beach real estate and homes for sale. Get a list of new homes for sale as they hit the market emailed to your Inbox.

Related posts:
Virginia Beach Real Estate: Interest Rates Rise

Virginia Beach interest rates inched up this past week according to the Freddie Mac Primary Mortgage Market Survey®. Survey results showed the 30-year fixed-rate mortgage (FRM) averaged 6.13 percent for the week ending March 13, 2008, up from last week when it averaged 6.03 percent. Last year at this time, the 30-year FRM averaged 6.14 percent.  

Despite fluctuations, interest rates remain extremely low making housing more affordable for many Virginia Beach home buyers. Search all Virginia Beach real estate and homes for sale. 

Interested in learning about new homes for sale as they hit the market? Visit EmailVirginiaBeachHomes.com, or give us a call at 866-222-0158 #550.

Learn about Virginia Beach market trends:

Virginia Beach Homes Sales Follow National Trend
Virginia Beach Real Estate Market Report-Feb 2008
Real Estate Year End Review

Virginia Beach VA mortgage interest rates declined this week according to the Freddie Mac Primary Mortgage Market Survey®. This week’s survey shows the 30-year fixed-rate mortgage averaged 6.03, down from last week when it averaged 6.24 percent. Last year at this time, the 30-year FRM averaged 6.14 percent.  

Declines in the job market, slowing in manufacturing and low consumer confidence drove bond yields lower this week and mortgage rates followed.

Wondering how this drop in interest rates affects your buying power? Visit our website, ButlerTeamHomes.com or give us a call at 866-222-0158 #550. Start your Virginia Beach VA homes search here.