Mortgage Rates Take a Major Hike – What Happened?
Mortgage loan rates are up almost 1% on average 30-year fixed loans, after their major increase on Tuesday. This is a larger upward move than we’ve seen since 2010, and may serve to temper the extreme activity we’ve seen in home sales lately.
There’s no simple explanation for the rate increase, but experts agree that we can contribute it to investor reaction to the Fed’s asset buying activity changes. In addition, the extended period of extremely low rates, that we have experienced cannot be maintained indefinitely, and balances itself out over time. Thankfully, the increase from 3.25% average to 4% only equates to around $100 per month on most mortgage payments.
Overall, mortgage rates are still on the extremely low side of the spectrum (historically, 4% is an awesome mortgage rate to get!) and it remains a great time to buy or sell. Please call right away if you or someone you know is interested in buying or selling a property! And if you need a referral to a great loan officer, just let us know.