Mortgage rates finished last week up again, after six straight weeks of steadily climbing. A strong jobs market and indications of inflation in the economy seem to be the biggest drivers of the higher rates we’re seeing.
We’ve been lucky enough to enjoy rates below or around 4% for several years – a month ago the average rate on a 30 year fixed mortgage was 4.11%. But we’ve now seen rates reach 4.65% or higher, and average around 4.5% as of last week. At the time of this writing, the rates actually eased back down a bit, averaging 4.31% on Tuesday, which is good for anyone able to lock in now.
When we wrote in early January about what experts are predicting for Real Estate this year, one of the expectations was that the average rate on a 30 year fixed would reach 5% by the end of the year. Well, now that prediction is looking pretty solid, and maybe more likely to happen sooner rather than later in the year.
What does this mean for buyers? It’s yet another reason to make your move soon if you can. Not only are prices expected to continue to rise at a steady pace, but if you can lock in a decent rate now before they continue higher, you’ll thank yourself down the road!
It’s important to remember, that even at 5%, rates are historically low. It’s mind boggling to think of, but in the 80’s the average rate hit 18%!! While we’re not likely to see the teens any time soon (thank goodness), it seems certain that we’ll continue to see rates climb this year and probably for some time. If you’re thinking of buying, waiting is only going to cost you more.
Questions on current rates, or how they affect your purchase or sale? Contact us today to ask us, or to get your real estate transaction started now!