Mortgage Rate Approaching 6 Percent
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
It looks like mortgage rates are pushing the 6 percent mark, a significant milestone for the real estate industry.
After four consecutive weekly hikes, the benchmark 30-year fixed-rate loan is just under 6%, a psychologically significant level that hasn’t been breached in six months. Given the inflation-fighting talk coming out of Federal Reserve officials this week and the clear implication that the central bank will continue hiking interest rates, 6% mortgages might be at 7% sooner than most economists are predicting.
Mind you, 6% and even 7% mortgage rates are pretty darn good by historical standards. Our current housing boom, which started in 2000, began with the 30-year mortgage at 8% or so. But we have been treated to such low rates for such an extended period that even a historically low 7% feels high.
We’re now about one-half a percentage point above where we were this summer. On a $250,000 mortgage, that difference equates to about another $80 a month in principal and interest payments. That might not be enough to stifle homebuyers who can afford the $1,500 or so payment in the first place, but as rate increases pile up so will those extra dollars on the payment.
I saw this earlier today and thought the exact same thing, Tom. The politicians have been pushing homeownership for ...
I just found your blog and it's filled with great information. One of my goals this year is to update ...
Thanks for the kind words. I promise you the first year we did not have this level of readership. It ...
The limit on jumbo's is either 417,000 OR it is 115% of the median house price, not to exceed 150% ...
I like your blog and I have read many of your articles. I agree that it is amazing the ...
Yes, there are some deals out there. While there are some deals out there, I'm an agent looking for ...
With mortgage rates poised to drop to 4.5 percent all we need now is some tax incentives to help home ...
I think the overall interest in refinancing was definately high recently. However the problem is that although the rates dropped, ...
I have had great success using craigslist. Renters need to be careful and make sure they check out their landlord ...
This is the start of where the market can begin to level out.
Home owners will start to be able to ...
