Home Mortgage Rates Spike, Prices and Sales Up

An improving economy is good news for homeowners, but not for homebuyers.

New sign this morning is that housing market is heating up. Home sales have already shown another monthly spike this morning. Good news for home owners. Also growing with those buyers could get burned. Here with financial contutor Betty, you know the tough news for buyers not only the prices goanna up, that mortgage is spiking too.

You said it, George, the national associate of realtor is expected to show that home sale’s grown by about 1.5 percent in July. That’s reversal. From the declining June, so, right now, if your home is a castle, you’re making money of it. In the 20 big cities, home prices have gone by about 14 percent. So two things are goanna happening here, or adding new jobs and those low interests rates but as you just said, George, they’ve gone up in last three months of 30-year, fixed mortgage has increased by over 1 percentage point. So, if you got mortgage on 20,000 dollars house 20 percent down, your mortgage paying would be increased by over 100 dollars a month. That’s 1,300 dollars a year. It’s interesting because oddly enough because the economy is doing so well, the Federal Reserve says, we may actually take the training wheels off this economy. We’ll pull back on stimulus that’s causing interests to rise. We’re goanna get a better idea how the fed is thinking because later today they’re goanna release the transcript of their last policy meeting. But don’t panic yet right a minute, interest is historically low and the demand is so high that the economy is saying any slowdown is like to be temporary.