Why? Because mortgage rates will rise. It’s inevitable and rates are currently at a 4-year high. Volatility in the mortgage bond market has made it more expensive and difficult for lenders to provide rate guarantees. Let’s take a closer look.
“With the strongest economy in the last decade, interest rates have slowly climbed in the last quarter to the highest levels since March of 2017,” said Kurt Cymerint, founder, and CEO of AdvantageFirst Lending. “The Federal Reserve has also publicly stated that they plan on raising rates three to four times in the upcoming year.” This will almost certainly put more momentum behind the already rising rates.
This pattern is likely to continue unless the mortgage industry experiences a drastic shift. “We have seen a few good days but not enough to affect upward trends,” added Kurt. While still low, homeowners need to prioritize their purchase and refinance goals in order to secure rates before they go up any further.
Here’s a look at the most prevalent rates, according to Mortgage News Daily:
30 Year Fixed – 4. 375-4.5%
FHA/VA – 4.0-4.25%
15 Year Fixed – 3.625-3.75%%
5 Year Arms – 3.0-3.5% depending on the lender
Final Thought: Last year, mortgage rates were expected to rise, but 2017 turned out to be a good year. Current trends, however, have left analysts less optimistic about 2018.
Advice: Don’t wait. Talk to a mortgage lender today to discuss your options and create a plan that will get you into your dream home.