Now that interest rates have hit an eight-year high, many are wondering what this means for the market.
One thing it’s important to realize is that the recent hikes were not only anticipated, they also came as a result of the improvements to our economy that have taken place since rates first dropped to the historic lows we observed in the recent past.
It’s also worth noting that, but despite this general upward trend, rates have decreased to a 12-month low within the past 45 days. This means that right now, with rates at an average of 4.75% for a 30-year fixed mortgage, rates have once more reached an incredible point.
As a result, mortgage applications have risen by approximately 25%. It’s clear to see that now is a great time to buy, or even refinance, a home loan. After all, a difference of just a 1% rise or drop in interest rates can dramatically impact affordability.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.