Since my husband and I locked in on a 15 year refi in January mortgage rates have risen dramatically. Rates at the credit union, where are our loan is being processed, rose from 4.75% to 5.65% in less than four weeks.
According to bankrate.com rising fears of inflation are causing mortgage rates to skyrocket. With inflation looming, lender’s are leery of providing inexpensive mortgage rates for the lengthy thirty year period.
As fears rise so do mortgage rates:
- The 30-year fixed has risen more than three-quarters of a percentage point in four weeks.
- One year ago, the mortgage index was 6.29%; four weeks ago, it was 5.57%. Today it stands at 6.37%
- The benchmark 15-year fixed-rate mortgage rose 41 basis points, to 5.87%.
- The benchmark 5/1 adjustable-rate mortgage rose 27 basis points, to 5.77%.
- The 30-year fixed jumbo, for loans of more than $417,000, went up 39 basis points, to 7.55%.
Obviously, I’m ecstatic that my husband and I decided to refinance our home when we did. Four weeks ago, after reading that rates had reached near record lows, we decided to jump in. Jumping in allowed us to shrink our 30 mortgage down to 15 years!
Well, now that interest rates have dropped mortgage rates should follow suit soon. I’m sure after the subprime debacle lenders are leery about lending out low rates for 30 year loans but there isn’t any insurance that the market will rise or fall. History says though that the market always rises. You just gotta wait. We’re selling our place right now and we’re hoping buyers feel the same way.
Jerry