Freddie Mac released the Prime Mortgage Market Survey (PMMS) showing average mortgage interest rates for LAST WEEK. Yes…last week’s mortgage rates are old news but this does illustrate where rates have BEEN and what direction they may be moving.
Inflation is the biggest culprit for driving mortgage rates higher. Mortgage interest rates are based on bonds (mortgage backed securities) and bonds do not react well at all to inflation. As we continue to see higher wages (ie wage inflation) and other prices rise, mortgage rates will likely follow. We also have the Fed pulling back their level of support of keeping mortgage rates artificially low.
In the big picture, mortgage rates are still historically very low…just not as low as over the summer.
Bottom line, if you’ve been considering refinancing, you might want to start your application now. If your home is located anywhere in Washington state, I’m happy to help you! Click here for a no-hassle mortgage rate quote.
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