This week, mortgage rates rose, which was comparative to their usual intraday movement potential. However, the market has been anything but average. In fact, the numbers show that the recent intraday losses are among the worst that’s occurred during the year. The exact levels confirm that it is the fourth lowest within the last year.
Losses and Gains
The market lost as much interest rate ground as it did due to the low rates that home buyers have been enjoying for the last few months. Experts have been predicting that changes were likely on the way. Industry insiders confirm that markets tend to run hard. When they do, it is often surprising, but eventually, markets complete their run and shift to the other direction. Those who are considering a home purchase should keep in mind that the rate rise could be a long-term or short-term situation.
Today, lenders are quoting rates that are around 3.625 percent for conventional 30-year fixed rate loans. This is up from 3.5 percent just a few days earlier. Several lenders are more comfortable quoting 3.75 percent, so if you are shopping for a loan, be sure to check around.
What Changed?
During the middle of December, the Federal Reserve increased rates, which caused concern regarding rates rising even more in 2016. However, since global financial markets entered 2016 in distress amid falling stock indices around the world, investors began turning to the bond market. When they did, rates fell. Because of this situation, mortgage rates continue to be affordable despite the increases put in place by the Federal Reserve.
