Mortgage Rates Slightly Rise

Dated: 10/31/2017

Views: 34

Interest rates are still near all time lows. Since this time last year interest rates have increased a little less than .5%. What does this mean for home buyers? NOW is the time to buy, don't be afraid of buying in this high market. Take advantage and lock in a low interest rate for the next 15 or 30 years. If you are waiting for prices to go down, you are also waiting for interest rates to go up. I was reading the article below and figured a few of you would enjoy it. Contact me if you have any questions regarding buying/selling a home. Enjoy!


30-year mortgage rate rises to 3.94%

WASHINGTON (AP) – Oct. 26, 2017 – The costs of borrowing to buy a home increased slightly this week, but U.S. mortgage rates are still near relative lows.

Mortgage buyer Freddie Mac said Thursday that the average rate on 30-year, fixed-rate mortgages rose to 3.94 percent from 3.88 percent last week. At this time last year, the benchmark rate was 3.47 percent. The historic average was roughly 6 percent.

Long-term home loan rates tend to track the yield on 10-year U.S. Treasury notes. The interest charged on 10-year Treasury notes has risen since early September, possibly in anticipation of tax cuts pushed by President Donald Trump that could cause the amount of government debt to climb.

Average mortgage rates began to rise after Trump's election nearly a year ago in anticipation of tax cuts, climbing to as high as 4.32 percent at the end of last year. But rates began to slope downward again this year as the intended tax overhaul is unfolding at a slower and less certain pace than what the president promised.

The lower borrowing costs have helped preserve some affordability for would-be homebuyers, who are finding that home prices are severely outpacing incomes.

The average rate on 15-year, fixed-rate mortgages, popular with homeowners who are refinancing, rose to 3.25 percent from 3.19 percent last week. A year ago, the 15-year rate was 2.78 percent.

The average rate on the five-year, adjustable-rate mortgage increased to 3.21 percent from 3.17 percent last week.

Source: FloridaRealtors

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Herson Richiez

Born and raised in South Florida, Herson is a young and motivated realtor who enjoys bringing the best customer service to his clientele. He likes to build friendships with his clients to make real es....

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