What Made The Mortgage Rates Increase?

Mortgage rates are increaseing for the second week in a row in a critical response to better-than-expected economic reports on the changes in the United States economy. “Fixed mortgage rates increased this week following stronger-than-expected economic data releases,” Freddie Mac Vice President stated. In the previous month alone, companies adding a staggering 215,000 new jobs in November, while adding another 54,000 jobs in October.

Monroe commercial real estate is seeing increases in every sector of the economy as mortgage rates increased to 4.46 percent this week, in comparison to the previous 4.29 percent the week before. The previous average was 4.16 percent a month prior, and 3.34 percent just one year ago. You can see that commercial real estate is increasing as the mortgage rates are doing the same as well.

“I believe that rates are likely to rise in the coming week as solid employment data are likely perceived as increasing the chances of the Fed making a December tapering announcement,” opined John Walsh, president of Total Mortgage Services. With the economy turning around with each new announcement, you will start to notice that Monroe real estate is doing the exact same. As the job market increases, so do the amount of office buildings being inhabited by new tenants looking to increase their profitability and business.

Over the next year, it was noted that prices will rise 4-6 percent in comparison to the 12 percent that they rose from 2012-2013. What you can expect from Monroe commercial real estate though is a steady increase in listings sold, businesses moving and mortgage rates increasing. As the economy turns around and all signs continue to point towards a steadfast recovery, you can only imagine that mortgage rates will gradually increase over time.

A recent poll from Bankrate.com stated that 55 percent of loan experts were calling for rates to still continue to climb well in to the new year. We do not know where they will lead to next, but if this previous year is anything to note, then increases are on the way.