Interest Rates On The Rise

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Interest Rates On The Rise

Interest Rates On The Rise: What’s Next?

With the recent events that have transpired and all the experts thoughts that interest rates were going to be decreasing if the GOP candidate for president won.  Well, the exact opposite has happened and we have currently seem some of the most significant upswings in interest rates in recent memory.  With Interest Rates On The Rise there is now a question of when will it stop and how does this new outlook affect the industry and what lasting effects could this have on the economy.  If you haven’t read my article detailing the interest rates after the presidential election and Interest Rates On The Rise you can find that article by clicking here.  Now we are going to look at how the past week and a half or so have measured up in terms of the recent future and history.  Given this information, we can make assumptions and suggestions about how we want to treat the prospect of purchasing a home.

Interest Rates On The Rise: Bad Week For Mortgage Rates

With Interest Rates On The Rise this signaled one of the worst weeks on record for interest rate hikes and the lasting impressions could have great consequences or this might just be an outlier and the rates may normalize yet again as they have for quite some time now.  On a week over week comparison of Conventional Loans Interest Rates On The Rise resulted in a 37 basis point or 0.37% increase in the national average on a 30-year fixed rate to nearly 4% at 3.94%.  To put this in perspective when looking at the history of mortgage rates, this is the 17th sharpest increase ever witnessed in the history of mortgage rate recording. Which goes all the way back to the early 1970’s.

Interest Rates On The Rise: What To Do?

As we are seeing Interest Rates On The Rise there are a lot of questions coming forward about what is next and how borrowers can get the most out of their mortgage right now.  If you are a person who is adverse to risk, then now might be the right time to lock in on a loan before the rates go any higher.  If these rates keep climbing the way they are, it will nearly wipe out any ability for borrowers to get a rate under 4.00%.  If you are also in the market of getting a refinance, now is also a real good time to get your refinance done if your rate is 4.5% or higher.  With rates ticking up, there isn’t much time to waste before a refinance will be out of the question.  With the entire mortgage rate assumptions out the window, now is a very volatile time to be shopping and if you are adverse to risk, my suggestion is to lock in sooner than later just to ensure you are getting the rate that you desire and what makes financial sense.  We shouldn’t see many weeks with this type of increase, but the fact of the matter is interest rates below 4% might be on the way out.  The economy isn’t strong enough to support quickly increasing mortgage rates, but the historic lows may in fact be history…  If you are interested in locking in a rate for your mortgage or refinance ASAP please call me at 888-900-1020 ASAP or you can email me at contact@loanconsultants.org, or visit my website www.loanconsultants.org.

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