Mortgage Rates Are on the Rise
While you’ve been out on your summer vacation this year, the average interest rates for fixed rate mortgages were rising: Mortgage rates have risen to their highest levels since July of 2011.
According to Freddie Mac, the average interest rate on the 30-year fixed rate loan jumped to more than 4.5% while the average interest rate on the 15-year fixed rate loan rose to 3.60%. While mortgage interest rates have risen more than a full percentage point since May of this year, they are still low by historical standards.
Recent reports suggest the jump in rates has not curtailed the recovery in the housing market. And, it’s still a good time to buy a home. Home prices have stopped falling, and are rising in many areas.
If you’re out looking for a home to buy, and if it’s been awhile since you were last pre-approved for a mortgage, now's a good time to check in with your mortgage broker or lender to see how the increase in mortgage rates has affected your buying power. If you haven't already done so, you should make sure you get pre-approved for a mortgage so that you can lock in the best available rate when you've found your dream home and apply for a mortgage.
If you really like this blog post, please comment below and/or share it with your friends.
East Bridgewater, MA 02333
Lew Corcoran, ASP®, IAHSP, IAHSP-CB