Many homeowners are holding out hopes that rates will continue to drop.  However with the recent increase in Gas prices as well as household items,  Inflation is at an all time high for the month of May.  Because of this rates for mortgages have been on a steady climb.  Many economists are predicting 7% for 30 year fixed rates by the end of the year. 

Also on the horizon are changes coming to the FHA.  FHA used to offer one rate for all borrowers regardless of risk.   Beginning July 14th the FHA will introduce for the first time credit risk base pricing.  Currently Fannie Mae and Freddie Mac were the only GSE's to have risked based pricing.  This will increase interest rates and costs for those looking to refinance.  So if you are looking to cash out for the summer, update the house with home improvements or refinance out of your adjustable rate, do it before July 14th and save yourself some additional money.  Also keep in mind that the increase in mortgage loan limits will expire at the end of the year.

 

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