Rates on 30-year, fixed-rate home loans spiked 0.53 percentage points to an average of 4.46% this week — the largest weekly increase in more than 26 years, mortgage giant Freddie Mac said Thursday.
The 30-year loan, which stood at 3.35% as recently as early May, is at its highest level since July 2011.
Rates for 15-year loans, popular with homeowners refinancing their mortgages, jumped 0.46 percentage points to 3.5%.
An extra percentage point will cost homebuyers with 30-year, fixed-rate mortgages $56 more a month for every $100,000 they borrow.
Source: http://money.cnn.com/2013/06/27/real_estate/mortgage-interest/index.html
“Higher mortgage rates may dampen some housing market activity but the effect will be muted by the high level of buyer affordability, and home sales should remain strong,” Frank E. Nothaft, Freddie Mac vice president and chief economist, said in a statement. Low mortgage rates have provided a critical boost to the housing market, which in turn has helped lift the economy.
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Home Buyers Pay Attenttion
This jump was the largest weekly increase in the past 26 years. To put it into perspective: If you were buying a home last week, the average cost of your home loan has now jumped up 13.5%
US 30 Year Mortgage Rate 2004-2013
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Current mortgages cost as much as they did just 2 years ago. Watching rates shoot up so suddenly in just a weeks time may seem shocking but one does well to keep in mind, this is just a knee-jerk reaction to the Federal Reserve’s announcement that it will soon ease up on QE3 or its third round of quantitative easing.
US 30 Year Mortgage Rate 1980-2013
Looking back at what rates looked like for the past 30 or so odd years shows that now is still a great time to get a historically low-priced mortgage. If you’re in the market to buy a new home it means now is the time to act! The Federal Reserve’s announcement of easing up their bond-buying program this year suggests that mortgage rates will only rise. Use our awesome MLS database listing search right here on our site to find your next home or contact me today to help you find exactly what you’re looking for.
