Mortgage Rates Hit 5 Month High, Up Over 4% Now, A Real Estate for Santa Clarita VIDEO Update
We have been updating mortgage rates for a few months almost daily and we have seen this trend up lately. But now CNNMoney is reporting it (they obviously follow my blog). We have seen the market start to look up here in Santa Clarita and many reports are suggesting we have seen the bottom, so with that rates should start to inch back up to some sort of normal level (3.75% is not normal!)
Check out the video and catch the article from CNNMoney below
After many recent weeks where mortgage rates hit record lows, the 30-year rate jumped this week to its highest level since late October.
The 30-year fixed-rate mortgage, a popular choice for most homebuyers, hit 4.08%, according to Freddie Mac’s weekly survey. That’s 0.16 percentage points higher than a week earlier and its first time over the 4% mark since October.
The average rate for a 15-year loan also climbed, to 3.30% from 3.16% last week.
The 30-year rate has occupied a very narrow range for months, varying only between 3.87% and 3.98% all this year. Historically low mortgage rates have been a bright spot for buyers in a troubled housing market.
“A strengthening economy has pushed mortgage rates up a little bit,” said Keith Gumbinger, vice president of HSH.com, a mortgage information company. “We’ve moved off the absolute rock-bottom lows of the past few months to a slightly higher level.”
Freddie Mac’s chief economist, Frank Nothaft, attributed the increase to bond yields rising over the past two weeks after a more upbeat assessment of the economy by the Federal Reserve, better-than-expected results of commercial bank stress tests and the likelihood of a second bailout for Greece.
Even after the rise, mortgages are still cheap. The increases add less than $10 to the monthly mortgage payment for every $100,000 borrowed.
Clearly this isn’t going to skyrocket to 7% over night, but if home prices in Santa Clarita start trending up and rates do the same, monthly payments and interest paid over 30 years will raise with it.
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