Mortgage Rates Jump on Good News and Inflation

Mortgage rates jumped roughly 0.25% today in rate (or about 1% in discount points) today because of strong economic data and possibly signs of inflation.  Costco announced it will be raising their minimum pay to $16 per hour – which is great news for Costco employees – however, it’s wage inflation (which we will probably see more of). When wages go up, the cost of goods will follow. Inflation drives mortgage rates higher because of the impact to bonds, like mortgage backed securities.

Although mortgage rates are still extremely low, they have been trending higher since mid-January and I anticipate will continue to move higher… especially if we have more good news, like getting covid-19 under control, continued improvement to jobs and the economy….or more signs of inflation.

Mortgage rates will probably continue to bounce around and you can still get a super low rate — if you act quickly.

If you are buying a home and your ratios are “tight” you may want to check in with your Loan Officer to see if the increased rates impact your loan pre-approval.

If you have been considering refinancing and/or have not locked your rate in yet… you may want to reach out to your Loan Officer as well.

If you are buying or refinancing a home located anywhere in Washington state, I am happy to help you! Click here for current mortgage rates for homes located in Washington state.

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