If you’ve seen any of the recent headlines about mortgage rates or are in your own process of buying, you know that they are higher and not fairing well. For more specific information and how it’s affecting us locally, read on for the 3 things you should know.
We Can No Longer Say Rates Are Stagnant
If September is any indication, we’re no longer remaining that stagnant as far as rates go, but it’s not looking favorable either. Rates on a national level have moved up from 4.6% to hang at an average of 4.75% through much of the last couple weeks, and continued unfavorable reports have pressed rates higher. The consistent reports across every day of the last two weeks have been “mortgage rates had a bad day,” but when we’re saying it every day or almost every day, I think it’s safe to say it’s more than just a day, especially in context of the entire year where we’ve moved from just over 4% as the average at the beginning of the year, to now heading towards averages of close to 5%. We are definitely in a trend of increasing rates.
We’re Heading Towards Long-Term Highs, Reminiscent of 2011
Rates cooled off heading in the summer months, but that proved to be the eye of an ongoing storm. As long as the wall street and economy reports remain strong, rates can continue to move higher in general, even though there may be brief periods of correction. Mortgage rates have continued to rise throughout September anywhere from at least an eighth of a percentage point to a quarter of a percentage point. This largely equates to conventional 30yr fixed rates of 4.875% to 5.0% remains far more prevalent. That’s as high as mortgage rates have been since 2011 for most lenders.
Going forward though, Ted Rood, Senior Originator and regular Mortgage Daily News contributor says that “A .25% Fed rate increase is all but given, the big question is Fed Members’ outlook for future hikes. I’m still locking new clients at application, if closing within 60 days. It’s going to take a significant shock, not just some disappointing data, for this upward rate trend to reverse.”
Bonus: So, What Does This Translate to in Local Terms?
September has not been good for local mortgage rates from the buyers perspective as all rates have risen over the last month, many up more than .25% since this time in August. If federal predictions are any indication, now is the time to lock and stay locked as the expectation for higher rates overall continues to loom.
Here’s a few local mortgage rates, according to bankrate.com, based on a 30-year fixed rate with a loan of $300,000:
|Wilson Bank and Trust||5.0%|
|Fifth Third Bank||4.875%|