Mortgage Rates Climbing?

Mortgage Rates Climbing?

Beginning of the year mortgage rates were dropping but as with all things in real estate, it’s cyclical … they’ll starting to increase…

Neal J. Leitereg wrote an article noting the rates on a 30 year fixed mortgage on Realtor.com

“The average rate on a 30-year fixed-rate mortgage rose 0.05 percentage point, according to the latest survey from mortgage buyer Freddie Mac, increasing from 4.23 percent to 4.28 percent. The rate had dropped to 4.22 percent two weeks ago, its lowest mark since June 20. A year ago, the 30-year-fixed average was 3.37 percent.

The average rate on a 15-year fixed loan saw an uptick of 0.02 percentage point, inching upward from 3.31 percent to 3.33 percent. Compared to a year ago, the 15-year average has gained 0.67 percentage point.
Mortgage rates had trended downward in late September and early October as a result of ongoing recovery concerns, particularly the Federal Reserve’s decision to extend its bond-buying stimulus program. However, average rates on key fixed mortgage loans have ticked upward as a result of the federal shutdown, which delayed the release of various economic reports that influence rates and bottle-necked the loan approval process.

Early Thursday morning, President Barrack Obama signed a bill to reopen the federal government after an 11th-hour agreement was reached by Congress on Wednesday. Had an agreement not been reached, the U.S. was poised to lose its federal borrowing authority.
“We can begin to lift this cloud of uncertainty from our businesses and from the American people,” Obama said on Thursday morning.

While the federal government is back in business, don’t expect to see much of a change in mortgage rates in the short term. Half of the mortgage analysts and experts polled in this week’s Mortgage Rate Trend Index by Bankrate.com believe rates will remain static over the next week.”

http://www.realtor.com/news/mortgage-rates-tick-upward/

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