Mortgage Interest Rates Continuing to Rise Slightly Due to Improved Unemployment RatesThe national unemployment rate recently dropped from 7.9% to 7.7%. More people are being hired which helps boost the economy. All good news for sure.
One result of lower unemployment and an improving economy is that mortgage interest rates will rise. This has been happening very slowly since the beginning of the year. Realtor.com ran an article last week about rising mortgage interest rates.
Some predict that rates for 30-year fixed home loans for credit-worthy borrowers could hit 4% by the summer. 4% is still a very good interest rate but since home prices are also rising, that means that home buyers will be buying less house for the same dollar. Rising rates will also affect the decisions of homeowners who are considering re-financing their current loans.
No time to rush or panic but if you are thinking of buying a home or re-financing this year, you should consider acting sooner than later to be safe.
We work with top-notch, local mortgage professionals. Call us if you have any questions about rising mortgage rates or if you need a referral to a mortgage professional.