In the past week, mortgage rates on a standard 30-year fixed loan have quickly jumped at least a 1/2 (.5%) point, and in some cases 3/4 (.75%) of a point. This time last week, most lenders were @ 4.50% on a standard 30-year fixed rate. As of closing yesterday, 2 very good lenders I know were @ 5.0% and 5.25%. Read this CNBC article, which outlines the reason for the very fast spike in interest rates.
Why?
Answer: Due to the bonds market sell-off. This takes the yield curve up. Yesterday, we saw the yield come up 12 basis points alone! Rarely have we seen fluctuations like we have in the past day, or week.
My suggestion: if you have been thinking of buying, consult with your lender as to whether they think you’ll want to speed things up (a 5.0% interest rate is still fantastic, historically speaking), or if they think this increase in rates is short-term and will come back down.
Remember, nobody has a crystal ball, and prognostications are often proven wrong, but a good professional will still be your best source.
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