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The spring house and home selling season is here. Interest rates are still at relative lows and many would like to see more Americans move towards mortgage acquisition and home ownership. Mortgage rates are beginning to slowly climb higher which would lead one to believe that fewer Americans will be able to afford home ownership in the current economic environment. A big economic ratings report posted this week from Standard and Poor which downgraded the potential for economic growth in the United States. It would seem that the housing sector might be falling further away from a productive surge and not closer. However, according to chief economist, Frank Nothaft, the combination of low mortgage rates paired with the below average selling price of homes in America, the sector could be in store for a surge of positive action during the spring season. The second quarter is often the time that we would expect to see an upswing in the new and existing home sale numbers and according to February statistics from the National Association of Realtors, home sales for existing homes is notching higher. Interest rates notched higher last week as well though. The long term mortgage interest rates for 30 and 15 year fixed rate mortgage options bumped up. Specifically, Freddie Mac posted yesterday that the average interest rate on the 30 year fixed rate loan moved up to 4.97 percent from 4.87 percent. This data comes after the interest rate on the 30 Year FRM hit a 40 year low of 4.17 percent in November. The average rate on the 15 year fixed rate mortgage moved higher to 4.13 percent from 4.10 percent. Even with the rates moving higher, some economists believe that the numbers in February, regarding home sales, is indication that a spring surge is upon us. Rates are expected to slowly climb in 2011, but hopefully the sales numbers will as well. Author: Stephen Johnson
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