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Mortgage Rates Are Rising and Buyers Are Hesitating
While rates will remain low for the foreseeable future, the numbers are starting to creep back up from their rock-bottom positions. The rising rates are partnered with lower demand for mortgages over the last week. It is too early to tell whether this is a temporary dip or a new trend. A reduced demand for mortgages could help to level the market and reduce housing prices.
30 Year Fixed Mortgage Rate
|Change From Yesterday||0.021%|
|Change From One Week Ago||0.037%|
|Change From One Year Ago||-0.168%|
15 Year Fixed Mortgage Rate
|Change From Yesterday||0.041%|
|Change From One Week Ago||0.041%|
|Change From One Year Ago||-0.472%|
Today’s Financial Headlines
As mortgage rates rise, interest in refinancing and new mortgages declines. Economists say that the slow down is also a reaction to the high real estate prices we are currently seeing throughout the nation. A decrease in buyer demand could lead to an overall decrease in housing values. If this trend continues, it could be beneficial for the national economy. America faces an affordable housing crisis that has been amplified by the current real estate boom.
When you are pre-approved for a mortgage you will receive a three page federally mandated loan estimate. This document tells you the amount you will borrow, your interest rate, and repayment terms. Three days prior to closing you will receive another document called the mortgage closing disclosure. This document contains the final terms of your loan, which may differ from your estimate. You need to review it carefully and compare it to the original loan estimate you received. If any corrections are necessary, you need to contact your loan officer before closing.
This report identifies fluctuating interest rates, housing supply shortages, and an evolution in digital servicing of mortgages as the primary industry trends for 2021. Rates are expected to stay in the low threes throughout the year. Low interest rates are balancing high housing prices to form a strong real estate market.