Mortgage Rate Rises 0.40 Percentage Points In Three Trading Days

Printer-friendly version
November 18, 2016

The national debt is rising, foreign holders of US Treasuries are now selling, and the 10-year Treasury yield is expanding.

Business Insider says that the 30-year fixed mortgage rate has jumped significantly as well. Various reports indicated that the average 30-year fixed rate mortgage with conforming loan balances jumped to 4.02 percent this week, a 0.40 percentage point increase in just three trading days. Mortgage applications and refinance activity dropped, too.

A rate of 4 percent is still low, but rising home prices will make it tough to buy.

If rates rise one percentage point, for example, from 3.5% to 4.5%, the monthly payment for many cash-strapped households moves out of reach. With a $220,000 mortgage, the monthly payment jumps by $127 from $988 to $1,115. This makes life $1,524 per year more expensive. Households that have trouble making ends meet suddenly can’t get there.

Read more

Comments on: "Mortgage Rate Rises 0.40 Percentage Points In Three Trading Days"

July 2017

This Month in Professional Builder

Products
Features

Ashton Woods launched Starlight Homes to target entry-level home...

Overlay Init