Is the Era of Low Mortgage Rates Over?

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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.”

Wall Street Journal / Freddie-Mac

Click here to read the full story on Realtor.com.

Click here to read the full story on the Wall Street Journal.

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Director of Education & Outreach, National Real Estate Investors Association

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