Not exactly, but they are trending upwards. The U.S. home-loan rates are at the highest they have been in 13 months. For the past 3 weeks, mortgage rates are climbing, but luckily the rise is likely going to come to an end.
For a cumulative growth of over a quarter percent higher on the 30% fixed mortgage rate, it isn’t the only thing that has risen. The 15 week fixed loan paralleled the 3 week jump, but luckily both averages are still lower than last year’s.
Aside from the fixed rate loans, rates on ARM, or adjustable rate mortgages, are holding fairly steady with a slight .01% rise. But with all these rates increasing, the stock opened up after Memorial Day weekend at a stronger place that will push the mortgages rates higher. The adverse data caused a significant spike in mortgage rates that may hold at its steady increase for the next week.
Treasury auctions will be occurring later this week, which means that towards the end we may see a little action from the bond sales. This normally translates into lower mortgage rates.
Despite the increases, rates are fairly low and home-buyer affordability is high, allowing for a healthy sale in homes in the next few weeks. According to the National Association of Realtors, the mean days a house will be on the market for single family homes is between 46-62 days, which is the fewest number of days since the association started recording data two years ago.
The New Home Sales data showed earlier this week that there was a 2.3% growth for the newly constructed homes, which came as a surprise. Analysts expected a smaller increase but mortgage experts don’t want you to get over excited about the under-prediction.
What can you expect to happen here with mortgage rates in the near future? After the continual increase we are currently experiencing, there will be a break for rates and it will begin to level out. Many experts are predicting that the mortgage rates have the potential to fall, but will most likely remain fairly level for the next few days ahead of us.
While the rates as of now for adjustable-rate mortgages and fixed loans will continually creep up, it isn’t near the prices homeowners were dealt this time last year. Opening strong for stocks after the long holiday weekend, the rates may be teetering down for the rest of the shortened week.
Friday will be the day to look forward to some relief for mortgage rates after the treasury auctions. The fierce double-edged sword of the stock market swell will continue to prevent the mortgage rates from lightening up, but analysts aren’t looking forward to the depletion of points from the Dow.