Fixed Mortgage Rates Increasing?

The National Association of Realtors claims now is the perfect time to buy a home

But what they forgot to tell you is that while the Federal Reserve has recently slashed the funds rate by 1.25%, 30 year fixed mortgage rates are going up:

U.S. fixed-rate mortgages rose in the latest week, according to Freddie Mac’s survey released Thursday. The national average interest rate on the benchmark 30-year, fixed-rate loan averaged 6.04% in the week ending Thursday, up from 5.72% a week ago, but lower than the year-ago 6.22%.

Home owners who get a mortgage today are paying for the money banks lost writing bad loans in the recent housing bubble.

If you are in a market where prices are dropping, expect further savings by waiting out your purchase, as homes keep losing value, inventory keeps increasing, and mortgage rates eventually reflect the Fed’s recent cuts and future cuts.