How much will mortgage rates increase?
Rumor has it, mortgage rates are on the rise. The economy is undeniably healthy… have you checked your retirement accounts lately? Unemployment rates have dropped considerably, nationwide unemployment is at its lowest in over a decade. And low interest rates have remained on the charts much, much longer than is usual. But our national debt is set to soar so the Federal Reserve is looking to hedge against a surge of inflation by bumping up interest rates. Mortgage interest consistently reflects the Fed so onward and upward it is. How much will mortgage rates increase? Hard to tell but I do anticipate a slow and steady rise throughout 2018.
Having said all that, the low 4s, which is where we’re sitting right now, is still a stunningly affordable mortgage rate. With seasonally static real estate prices in place home buyers may just consider this the right time to jump into the market.
Average 30-Year Mortgage Rate Above 4 Percent
By RISMedia Staff
The average 30-year, fixed mortgage rate charged to 4.04 percent this week, up from 3.99 percent the week prior, according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS®). The 15-year, fixed rate averaged 3.49 percent, up from 3.44 percent the week prior, while the five-year, Treasury-indexed hybrid adjustable rate averaged 3.46 percent, the same as the week prior.
“The U.S. weekly average for the 30-year fixed mortgage rate rose above 4 percent for the first time since last summer to 4.04 percent in this week’s survey,” says Len Kiefer, deputy chief economist at Freddie Mac. “This is the highest weekly average for the 30-year fixed rate mortgage since May of 2017. Some may be wondering if this is the last time we’ll see a three handle on the 30-year mortgage rate. Never say never, but inflation is firming, the Federal Reserve’s Beige Book indicates broad-based economic growth, and labor markets are tightening. This means upward pressure on long-term rates, like the 30-year fixed-rate mortgage, is building.”
Source: Freddie Mac Reprinted with permission from RISMedia. ©2018. All rights reserved.
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