After dipping to near record lows again in April, mortgage interest rates have jumped to levels not seen in more than a year. Borrowers who are hoping rates will dip down toward those record lows again will probably find themselves disappointed. With hints from the Federal Reserve that their aggressive treasuries and mortgage-backed securities purchase program may be tapering soon, mortgage interest rates are up about half a percentage point in the last month or so. And odds that rates will move higher going forward appear higher than the odds of rates significantly lowering again.
The good news is that rates are still very, very low from a historical perspective. Just a few years ago the average 30 year fixed mortgage was in the low to mid 6’s. This month the average 30 year fixed mortgage is still in the low to mid 4’s. The important thing for borrowers to recognize is that the longer they wait to refinance or purchase a home, the greater their risk will be of missing these historic low rates entirely.
Contact us in the sidebar right away to get an estimate on a government-backed mortgage. Rates are still very low by any historical measure but there is no telling how long these low rates will be available.