Here’s what you need to know about our increasing mortgage rates.

If you’ve been following the market at all over the last 18 months, you know we currently have historically low mortgage rates. However, they've recently begun to creep back up. Why is that and what does it mean for the future of our market? Let’s talk about it. 

For the first time in about three months, the average national interest rate surpassed 3% recently. This is still a very low rate, but it’s higher than what we’ve been seeing. 

It’s important to understand that interest rates increase with the 10-year treasury rate. This rate is tied to three basic factors: economic outlook, inflation, and interest rates. As things begin to return to normal after the pandemic, there’s a lot of uncertainty and inflation. As a result, the 10-year treasury rate has increased, and mortgage rates have followed suit. 

If you think you may want to buy a home in the next few years or so, we need to talk. With mortgage rates increasing, it may be a good idea to buy sooner rather than later. 

If you want to chat about today’s topic or anything else, please call or email me. I am always willing to talk.