Rates for a home loan have reached a 4 year high as benchmark bonds take a hit, as well as investors waited to see the minutes from the Federal Reserve meeting. A 30 year fixed rate mortgage averaged 4.4% during the week ending February 22nd, 2018 rising from 4.16% from the year before. The 15 year fixed rate mortgage rose from 3.84% to 3.85%.
The Federal Reserve doesn’t set mortgage rates, but its decisions effect them. With increased economic growth, increased consumer spending and an uptick in inflation, the chances the central bank will move on rates grew.
“Mortgage rates have climbed rapidly due in part to the U.S. economy showing signs of being at full capacity, and greater federal spending following the recent tax reform and federal budget negotiations,” Aaron Terrazas, Zillow senior economist, wrote in an email. “Home shoppers thinking about buying this spring should be aware of how their mortgage rate affects the long-term costs of buying a home.” Kathy Orton with the Washington Post
So far, the increase of mortgage rates is not hurting the housing market. Demand still remains high. Not to mention, there are fears of the rates continuing to rise. If you are interested in buying, selling, or investing in property in Truckee or North Lake Tahoe, contact Carmen Carr. Carmen Carr your Global Real Estate Advisor will be available to answer any of your questions about your real estate needs.