Income Growth, Mortgage Rates Propel Homebuyer Optimisim

 Here’s a look at recent news of interest to homebuyers, home sellers, and the home-curious. 

“Miramar Beach” by local Santa Barbara artist Chris Potter

 Americans are feeling better about the housing market than ever before, though May’s lackluster jobs report could dampen some of that enthusiasm as the summer progresses.

That’s according to Fannie Mae’s most recent monthly Home Purchase Sentiment Index, which climbed to 85.3 last month, the highest in the survey’s history. The number of respondents who reported having more income than they did a year ago increased from the previous month, as did the number who expect home prices to keep rising. The share of respondents who think mortgage rates will keep dropping in the coming year was also up from April.

But the economy may be giving some consumers a case of the jitters, with slightly more respondents expressing concern about losing their jobs than in April. And while May’s disappointing employment numbers do present some cause for concern, there were nearly 5.8 million open positions in April, an all-time high.

CURRENT INTEREST RATES | JUNE 10, 2016

CONFORMING RATES ($200,000 – $417,000) 0 POINT 30 Year Fixed: 3.625% (3.70% APR) 7/1 ARM: 3.125% (3.19% APR)
CONFORMING (HIGH-BALANCE) RATES ($417,001 – $625,500 cap by county) 0 POINT 0 Year Fixed: 3.625% (3.70% APR) 7/1 ARM: 3.125% (3.19% APR)
JUMBO RATES ($625,501 – $2,000,000) 0 POINT 30 Year Fixed: 3.750% (3.82% APR) 7/1 ARM: 3.125% (3.19% APR)
RATE TRENDS Rates are FLAT TO BETTER compared to last week. Rates are the SAME compared to last month. Rates are LOWER compared to one year ago.