Although still very low, mortgage rates have been trending higher. This morning I’m updating a quote for a Seattle home owner who is considering refinancing. The same rate I quoted her a month ago today at “par” (no discount points) will now cost a full discount point or is 0.125 – 0.25% higher in interest rate with similar pricing. I have more on current mortgage rates below.
As the economy improves and the stock market rallies, mortgage rates tend to rise. This is because investors will trade the safety of bonds (like mortgage backed securities) for the potential better return with stocks.
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