Real Estate – Mortgage Rates Movement
Interest rates have increased approximately .5% the last couple weeks. This doesn’t sound like much… but on a $300,000 loan that is equivalent to about $31,000 over 30 years. I think rate fluctuation is certainly something to keep in mind as we move forward in this competitive market. It is my belief that rates will stay very low for the near future (next 12-16 months). I expect them to cycle up, as they have the last couple weeks, then correct on a pretty consistent basis. So, I think they will come back down in the next week or so.
The recent increase is due in part to the government leaking info they are going to scale down their bond purchases to see how it will impact the market… and the result hasn’t been good. Loan applications dropped nationally since they started this experiment. The country is still a little too fragile for them to play games with the rates. Luckily in markets like Boston we reap benefits of the country’s lag.