This morning Freddie Mac released their weekly Prime Mortgage Market Survey (PMMS) showing that mortgage interest rates are continuing to trend higher. Click here for current mortgage interest rates in greater Seattle and beyond.
This is the fifth week in a row that mortgage rates have pushed higher with the 30 year fixed rate is at it’s highest in over seven years.
From Sam Khater, Freddie Mac’s chief economist: “The robust economy, rising Treasury yields and the anticipation of more short-term rate hikes caused mortgage rates to move up,” he said. “Even with these higher borrowing costs, it’s encouraging to see that prospective buyers appear to be having a little more success. With inventory constraints and home prices starting to ease, purchase applications have now trended higher on an annual basis for six straight weeks… Consumer confidence is at an 18-year high, and job gains are holding steady. These two factors should keep demand up in coming months, but at the same time, home shoppers will likely deal with even higher mortgage rates.”
Speaking of short-term rate hikes, yesterday the Fed increased the Fed Funds rate by 0.25% as expected. It is anticipated that the Fed will increase the Funds Rate three more times this year. This means that if you have a home equity line of credit or credit cards that are based on the prime rate, you will see your interest rates increase by up to a point higher (1% in rate) by the end of the year.
If you’re interested in refinancing or buying a home located anywhere in Washington state, where I’m licensed, I am happy to help you! Click here for a no-hassle mortgage rate quote.
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