As January moves into our rear-view and with spring right around the corner, change is certainly upon us.
And change is exactly what we will see in 2012. There has never been a better time to buy than right
now. The decline in home prices is at or near bottom and interest rates will never be lower than they
are today.

The current mortgage rates for a 30 year fixed conventional mortgage remains in the 3.75% to 4% range.
15 year fixed mortgages are steady at 3% ‐ 3.25%. USDA, FHA and VA loans are hovering in the 3.75% ‐
4% range as well. This will not be the case going forward, so enjoy it while it is here.

Job growth is improving, but getting back to pre-2008 employment levels is going to take more time.
Economists expect around 2 million net jobs for 2012, up from 1.6 million in 2011. This isn’t enough to
impact the unemployment rate that much, but a move in the right direction. Home sales will increase as
employment grows.

Interest rates will be increasing in the near future. Inflation should ease to around 2% from 4% levels in
2011. As this happens, we will more than likely see the FED increase their short‐term interest rates to
keep inflation at healthy levels. As this occurs, investors will demand a higher yield on U.S. Treasuries.
This will force long-term rates to increase. We shouldn’t see a sudden spike in long term rates, but 4.5%
for a 30 year mortgage by summer is a high possibility. A 5% rate for a 30 year mortgage is a possibility
by the end of 2012.

Here’s to your success,

Ashley Hales, Mortgage Banker & WRAR Allied Member
Resource Financial Services, Inc.
Learn more about Ashley at: www.wilmingtonncmortgages.com