Freddie Mac reported for the last 3 weeks, fixed rate mortgages have been increasing steadily. They believe that the jump in rates will actually spark movement in the housing market as well as the construction industry.
Freddie’s Primary Mortgage Market Survey revealed that rates for a 30 year FRM, fixed rate mortgage, were actually lower than last year’s 3.78%, however, rates went from 3.51% to 3.59% in a 3 week period.
Frank Nothaft, VP at Freddie Mac, said, "Fixed-rates moved up for the third consecutive week, with the average 30-year fixed-rate mortgage about a quarter-percentage point higher than three weeks ago."
He also stated, "While this may slow some of the refinance momentum, rates are nonetheless low and home-buyer affordability high."
The survey also showed that 15 year fixed mortgage rates also climbed from 2.69% to 2.77% in the same span of time.
So far, the areas that remained consistent are the 1 and 5 year Treasury – Indexed ARM’s, adjustable rate mortgages. The 1 year ARM didn’t move at all and the 5 year only went from 2.62% to 2.63%.
BankRate.com, a financial rate information website, confirmed the upwards movement in the mortgage rates over the same 3 weeks.
So, for the buyers out there that have been standing on the sidelines observing and waiting to see what would unfold in the market, now just may be the time to activate.
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