While mortgage rates increased this week in Houston, CultureMap Houston reported that home builders in the area are struggling to keep up with a 13 percent increase in sales this year. Additionally, the supply of completed homes waiting to be occupied has dwindled to its lowest point in years, according to Metrostudy.
Many construction workers found jobs elsewhere when the building industry slowed significantly a few years back and now there is a shortage of tradesmen to meet the current high demand. Builders are working hard, but there is a backlog of sold homes, and buyers have to wait six months or more for their homes to be finished.
The benchmark 30-year fixed-rate mortgage in Houston rose to 4.6 percent from 4.45 percent, according to the Bankrate.com national survey of large lenders. The mortgages in this week's survey had an average total of 0.8 discount and origination points. Nationally, the 30-year fixed-rate mortgage was 4.55 percent.
The housing market in Houston has been on an upward climb the past two years. With strong job growth and many people relocating to the area, the housing industry looks to continue its rise, and builders will be working hard to keep up with the demand.
The benchmark 30-year jumbo mortgage, for loans of $417,000 and more, climbed to 4.5 percent from 4.31 percent. The benchmark 15-year fixed-rate mortgage surged to 3.7 percent from 3.5 percent. The benchmark 5/1 adjustable-rate mortgage grew to 3.58 percent from 3.45 percent.
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Weekly mortgage survey
|Results from Bankrate's Dec. 4 survey of mortgage lenders. Monthly payments are for a $165,000 loan. The jumbo rate is for the minimum jumbo loan amount of $417,000 in Houston.|
|30-year fixed||15-year fixed||5-year ARM||30-year jumbo|
|This week's rate:||4.60%||3.70%||3.58%||4.50%|
|Change from last week:||+0.15||+0.20||+0.13||+0.19|
|Change from last week:||+$14.85||+$16.40||+$12.09||+$47.34|