For the fourth week now, mortgage rates have been rising and currently show no signs of stopping.
The 30-year fixed rate is now at 4.65% and the 15-year fixed rate is now at 4.11%.
Though this sudden change may seem unprecedented and difficult to deal with, many analysts believe this surge in mortgage rates to be rather overdue.
This is due to the 10-year treasury rates.
As the price for the 10-year treasury falls, its yield rises and mortgage rates follow its lead. With the yield currently at 3.23, a four-month high, it’s no wonder why mortgage rates are skyrocketing.
As the mortgage rates rise along with home prices in many markets in the U.S., first-timers may have affordability issues.
The rates are expected to continue to rise, following the past month’s pattern of unrelenting growth, to around five percent in 2019.
I am advising clients not to wait for the rates to drop as they most likely won’t for the rest of the year. If you have been thinking about a purchase, refinance, or cash out act sooner than later to save the most money in interest.
I am always available to discuss your mortgage options at (925) 216-3618. You can also download my new mortgage app here: Annie Chang App