Mortgage Rates Inch Upward

by Laura Matiz 

Last fall I wrote (Rates: How Low Can They Go?, Oct 19, 2014) about the downward movement in mortgage rates  as 30-year, fixed loans crossed the 4% barrier. Rates eventually bottomed out in April 2015 at a monthly average rate of 3.67%, but have been on the rise since then and have recently crossed above 4% as shown in the latest data from Freddie Mac. 

The per month difference from the bottom rate (3.6%) to 4% is about +$23 per $100,000. The rising cost of financing homes might affect some sales in the second half of the year, but other factors such as the improving labor market and a strong housing sales will trump the effects of the rising rates leading to more home purchasers. It is important to note that mortgage rates are still near historical lows. With the rates inching upward, the mortgage refinancing market is likely to slow down. The best way to shop for a mortgage loan is via a mortgage banker. Please contact me if you need a referral. 

Market outlook reports:

• Freddie Mac June 2015 U.S. Economic and Housing Market Outlook
  
• US new home sales rise to 7-year high in May (CNBC)
  

Category: Mortgages