Are Mortgage Rates Rising

Dated: 02/28/2017

Views: 201

 

Call Angela for more information at 719-424-9585

Please visit my website http://coloradoyourhome.com/


Are Mortgage Rates Rising?

Are Mortgage Rates Rising?

Since the election of President Trump, yields on 10-year Treasury bonds have risen, as have mortgage rates. So far, the market has responded positively to the new administration. That has led bond yields to rise, and mortgage rates have risen alongside them. However, the movement in rates has so far been modest, and the average rate on a 30-year mortgage is still under 4%.

What About the Fed?

Another factor that can lead to an increase in rates is action by the Federal Reserve. If the Fed decides to raise the Federal Funds Rate, mortgage rates will rise, too.  That rate has been low since the Recession, and mortgage rates have been consistently low as well. But as our economy grows, the Fed is expected to raise the rate.

Reacting to Rising Rates

If you think rates are likely to rise by an amount that will price you out of the mortgage market, you might want to accelerate your home buying process now, before you feel the effects of higher rates. The same goes for refinancing. If you can afford to refinance now and you’ve calculated that refinancing will save you money, it might make sense to take the plunge before rates increase further. If, on the other hand, you’re planning to sell your home, you might want to consider putting it on the market before higher mortgage rates price potential buyers out of the market.

Related Article: Everything You Should Know About a Fed Interest Rate Hike

Bottom Line

Are Mortgage Rates Rising?

If you’re a millennial, you probably think that the low interest rates we’ve had in the last decade or so are the norm. In fact, recent rates are unusually low, so a rate hike isn’t a reason to panic. If you’re planning to buy or sell a home this year, you might want to take potential rate changes into account when you’re deciding on timing.

Photo credit: ©iStock.com/RobertCrum, ©iStock.com/BrianAJackson, ©iStock.com/tab1962    

Blog author image

Angela Ruarte

I am a licensed Real Estate Agent in Colorado. I specialize in Denver and all surrounding cities, including Aurora, Commerce City, Thornton, Brighton, Northglenn, Westminster, Littleton, Lakewood and ....

Latest Blog Posts

Your First Step in Buying a Home

Pre-ApprovaL:YOUR 1st Step In Buying A HomeIn many markets across the country, the number of buyers searching for their dream homes outnumbers the number of homes for sale. This has led to

Read More

Your First Step in Buying a Home!

In many markets across the country, the number of buyers searching for their dream homes outnumbers the number of homes for sale. This has led to a competitive marketplace where buyers often

Read More

New Listing - Denver - Under $175,000

You will fall in love with this 2 bedroom condo located at5995 W Hampden Avenue, H14 in Denver.   Centrally locatedoff of Hampden between Sheridan and Wadsworth. This home has been

Read More

7 Signals The Home You Are Looking At Will Have a Solid Resale Value

While it might seem premature to think about selling a home before you even buy it, it's important to remember that a house is an investment. And in an ideal world, investments make&

Read More