Just a quick post here, as there really isn’t a whole lot to add to this story:
Freddie Mac released their weekly mortgage rates survey today. Freddie saw the average rate on a 30 year fixed rate mortgage jump from 4.17 percent to 4.39 percent last week. This is still down significantly from last year when the rate for a 30 year fixed mortgage was 4.83 percent. Rates on 15 year fixed mortgages increased from 3.57 percent to 3.76 percent.
Rates are now at their highest point since the week of August 19th. Frank Nothaft, Freddie Mac’s chief economist, commented:
“Rates on 30-year fixed-rate mortgage were up to the highest level since early August and rates on shorter-maturity loans rose as well, although by somewhat lesser amounts”.
Volatility in the bond market has been the chief reason for rising mortgage rates. At this point, it is really difficult to make any sort of predictions as to where rates will go. The market has responded to QE2 in the opposite manner that many people expected. If there is something to take away from this report, I suppose it might be this: if you have been thinking about refinancing, but are waiting for rates to go lower, it may not happen. There is limited upside in waiting for rates to go lower, but a lot of downside. If it makes sense to refinance now, you should strongly consider doing so.
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