Last week, the average long term mortgage rate increased. This is the second time we have seen 30 year mortgage rate increases this year, and the second week in a row that increases have occurred. These rates had been declining at the beginning of the year due to anxieties about the turbulent global market.
What were the 30 year mortgage rate increases?
According to mortgage giant Freddie Mac, the average rate on a 30 year fixed rate mortgage grew from 3.64 to 3.68 percent last week. Average 15 year mortgage rates also saw increases from 2.94 to 2.96.
“The 10-year Treasury yield ended the survey week exactly where it started, however the solid February employment report boosted the yield noticeably on Friday and Monday,” Sean Becketti, Freddie Mac chief economist, said in a statement.
“Our mortgage rate survey captured the impact of this temporary increase in yield, and the 30-year mortgage rate rose 4 basis points to 3.68 percent. This marks the second increase this year. Nonetheless, the mortgage rate remains 33 basis points lower than its end-of-2015 level.”
The Associated Press wrote that economists polled at bankrate.com foresee rates rising in the short term. 64 percent said they thought there would be increases, 22 percent think they will stay the same, and 14 think there will be a drop.
Bankrate.com also reported about mortgage applications. The Mortgage Bankers Association’s weekly survey said that mortgage applications were up 0.2%. According to a new report by Fannie Mae, consumers are more optimistic about the housing market. The Home Purchase Sentiment Index rose 1.2 points. This is positive and expected as the spring buying season approaches.
While 30 year mortgage rate increases may sound bad if you are thinking about buying a home, the rate is still relatively low. The increases of the past two weeks may indicate further hikes, so do not hesitate to reach out to a RE/MAX Paradise Agent soon to talk about that dream home you have been eyeing.