Story Idea – What do rising interest rates mean for consumers?
Mortgage rates are currently sitting at their highest level in two years, with 30-year fixed-rate mortgages averaging 4.32 percent and 15-year mortgages averaging 3.55 percent. Rising mortgage rates continue to be a concern when it comes to home sales and affordability; however, rising rates tend to indicate a strong economy – and strong economies are good for housing.
Interest rates are still historically low, compared to 6.14 percent for a 30-year mortgage in December 2006. Consumers looking to buy should consider taking the leap as there is still plenty of room for rates to rise.
Talk with mortgage lenders in your area about what buyers can expect in the coming months. Speak with a REALTOR® about what they are hearing from buyers about rates. Also, speak with some new homeowners about any financing issues or struggles they experienced during the buying process.