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.”