This Week’s Mortgage Rate Anomaly

Time and again I’ve heard that federal interest rates are going to go up, and they have done so recently. That has had many people asking me about mortgage rates, and those have also been climbing of late. For instance, the rate for a 30-year fixed rate mortgage was at 5.05% in November – an 8-year high. This week, though, a 30-year fixed is back down to 4.75% due to the downturn in the stock market, which has “investors head[ing] to the relative safe-haven of the bond market,” according to Diana Olick of CNBC.com. She continues by saying that “mortgage rates follow loosely the yield on the 10-year U.S. Treasury,” which explains why rates have been more favorable this week. Read the full article by clicking here.

This week’s downward-trending mortgage rates are great, but I do think that we will see rates increasing overall. As previously mentioned, interest rates are expected to climb, and this will drive mortgage prices higher in the long run. I wish that I had a crystal ball and could tell you how high they might go or how it will impact the real estate market, but as of right now, only time will tell. If you are looking to buy a new home or to refinance your current one, now is the time to act!

If you are looking to buy or sell a home anywhere in Miami, please call me at 305-798-8685, or visit my website at: Luxury Miami Real Estate