Once again, the average long-term mortgage rates rose slightly this past week to 4.08%. This is the highest level for this year. However, it is still below last year’s high of 4.12%.
RISE IN RATES
Rates have climbed steadily during the past few weeks due to several reasons. The spring buying frenzy has fueled a slightly higher rate, as has the improved economic data.
In addition, the Federal Reserve has for weeks prepared the public for a “very likely” increase in the base interest rate at their upcoming September meeting.
National Association of Realtors’ (NAR) chief economist, Lawrence Yun confirms that “buyers are coming back in force. One factor for the recent surge could have been due to the rising mortgage rates. As nearly always happens, the initial phase of rising rate nudges people to make decision now rather than wait later when the rates could be higher still.”