It is no surprise the mortgage rates have hit their highest level in seven years, especially because of the previous five weeks of interest rate growth.
At times like this, prospective homebuyers are troubled about whether they should buy a house now or wait for the rates to change.
If you have waited until now to refinance I recommend you look into that right away. It can really save you lots of money.
The rates are predicted to take a short dip next week. Take this chance to lock in a rate on the house you’ve been eyeing. However, almost immediately, the rates will probably begin to rise again. Because of this, get your mortgage soon, and refinance the moment the rates drop to make the absolute most of your mortgage.
I track the rates throughout the day and if you are getting ready to make a purchase or refinance I can add you to my watch list and notify you as soon as I think the rates and terms are the best for you.
Currently, the rates are at 4.29 percent, compared to last year’s 3.27 percent for the 15-year, and the 30-year isn’t much better off, at 4.90 percent versus 3.91 percent from the year before.
This rise in mortgage rates was brought about with a rise in the 10-year treasury yield, which is now stably above 3 percent. Also judging by the path the rates are taking, it’s fairly likely that they’ll reach 5 percent by the end of this year or early next year, adding another reason to the list of why you should get a mortgage sooner than later.
If you plan to hold the property for less than 10 years, I advise to explore the adjustable rate mortgages. The interest rates on five-year adjustable mortgages averaged 4.07 percent.