Freddie Mac is reporting that for the first time since July we’re seeing interest rates climb above 4% on 30 year fixed rate mortgages as of January 18, 2018. This is a slight increase to 4.04% from last week when rates came in at 3.99%, just barely under the line.
Along with the 30 year fixed rate we’re also seeing a steady increase on the 15 year fixed and the 5/1 adjustable rates. They’ve all been climbing since last summer. You can see the trend here in Freddie Mac’s chart.
Freddie Mac Mortgage Rate Trends
Zacks notes these increases are strongly tied to Treasury yields as mortgages carry a risk premium and can be expected to stay above as the Treasury bond rates increase.
While the increases have been gradual and gentle, it’s still an upward trend. Combo that with increasing home prices here in Loudoun and you could end up paying a good bit more for that same home you’re seeing now just by waiting a few more months. A quarter point increase in rates would need a 3% decrease in home price to net you the same monthly cost. Rising home values could make that unlikely.
If you’re thinking of making that move then let’s start talking now and get ahead of the curve for your home search.