If you are looking to buy a home new vacation home in the Brainerd area now would be the time to do so. Not only are home prices on the rise, but so are mortgage rates. Mortgage interest rates have hit their highest levels in more than a year.
Mortgage rates have climbed now for six weeks in a row. A 30-year fixed-rate mortgage increased to 4.14 percent, up slightly over 4.1 percent the week prior according to a national survey of large lenders done by Bankrate.com. A year ago this week the rate for a 30-year fixed-rate mortgage stood at 3.91 percent, and just four weeks ago rates were at 3.71 percent. In the beginning of May interest rates were as low as 3.52 percent, which marked the one year point that rates had stayed below 4 percent. Is 4 percent the new norm for mortgage rates?
More than likely we will not see rates drop to the low levels we saw earlier in the year, but they may continue to stay around the 4 percent mark for a while according to industry experts. It looks like we will be calling a 4 percent 30-year fixed-rate mortgage the norm.
15-year-fixed-rate mortgages also are seeing an increase, their rate increased to 3.32 percent last week. These numbers are up from 3.28 percent the week prior.
If you are looking to purchase a vacation home in the Brainerd area now is the time to do so. A survey by HomeAway, Inc. showed that vacation homes in 2012 were up 24% over 2011, and prices are continuing to rise. Median home prices were % 150,000 in 2012, which is still well below the high we saw in 2005 when median home prices were $204,000.
Take advantage of still low home prices and lower mortgage rates, before they rise and buy your dream vacation home now. If you are looking to buy or sell a home in the Brainerd area, contact me, Bill Grunewald. My team and I enjoy helping folks like you find just the right spot to live your northern Minnesota Lake Country dream.
Bill Grunewald/ Edina Realty.
Licensed in Minnesota/ Lic # 20204156