Mortgage Rates Are Projected to Increase. What Does That Mean for You?
Did you know?
We’re currently experiencing historically low mortgage rates.
Over the last fifty years, the average on a Freddie Mac 30-year fixed-rate mortgage has been 7.76%. Today, that rate is 2.81%. Mass amounts of homebuyers have taken advantage of these incredibly low rates.
There are many things that impact mortgage rates including the economy and inflation, just to name a few. That makes forecasting rates difficult. However, the relationship between mortgage rates and the 10-year treasury rate has been a good indicator over the last fifty years.
Over the last five decades, there’s been an average 1.7-point spread between these two rates. It’s this long-term relationship that has some forecasters projecting an increase in mortgage rates as we move throughout the year.
What does this mean?
Whether you’re a first-time buyer or considering reentering the market, even an increase of half a point in mortgage rate makes a big difference.
Based on the 50-year symbiotic relationship between treasury rates and mortgage rates, it appears mortgage rates could be headed up this year.
It’s time to consider buying now rather than waiting. Contact us today to learn more.