The Wall Street Journal (via Realtor.com) recently reported that mortgage rates have risen to their highest levels since 2011, which they say signals the end of a long period of “ultracheap” loans and has ushered in a new era of higher-rates. In citing data from Freddie-Mac which showed rates quickly rising to 4.61% (up from 4.55%), they say it marks a clear departure from a long period of declining interest rates that began during the financial crisis. Interestingly, data show that interest rates were at their lowest in late 2012 at 3.31% and were even as low as 3.99% last January.
“The concern among economists is that higher rates will prompt homeowners to keep their low-rate mortgages rather than trade up for better properties. As rates approach 5%, the risk of the phenomenon known as rate lock grows, economists said.”
Click here to read the full story on Realtor.com.
Click here to read the full story on the Wall Street Journal.
