Fixed Rates for Mortgages sky rocket, the most since 1987

July 17, 2013

Three weeks ago the mortgage rates took a huge turn. A 30-year fixed rate mortgage went from 3.93% up to 4.46% in one week. Compared to last year when a 30-year mortgage was at 3.66%. The 15-year fixed rate went from 3.04% up to 3.5%. When last year the fixed rate for a 15-year mortgage was at 2.94%, this is a drastic change in a short period of time. This is the largest jump and change in interest rates since 1987.

A 30-year fixed rate mortgage is very common when taking out a loan on a house, so this increase will affect homebuyers. There is so much to look at when purchasing and or thinking about purchasing a home and current interest rates is at the top of the list. Because interest rates have such a major impact when purchasing a home, they have the power to change the potential buying power for current and future homebuyers.

When getting approved for a loan, many factors are reviewed which will give you a price range of what will be affordable for your lifestyle. Working in the interest rate will shift your “budget” lower or higher, depending on the rates at that time.

Due to the change and jump in mortgage interest rates, homebuyers will feel the affect on their monthly house payments compared to two weeks ago when the average interest rate was at about 3.75. Many people, including myself as a Licensed Realtor, will look at this with cautious eyes, and will keep watch on where they will go from here.

If you or someone you know has questions about moving forward with your new home purchase and/or are looking to see what your property value is in the current market – give us a call today! We have all the tools, experience and expanded referral list that you’ll need to move forward.