Hold on to your wallets cause mortgage rates are going up! The question is how high.
The first quarter of 2013 has shown a clear increase in residential mortgage rates. The 30 year fixed rate has fluctuated from a low of 3.60% in January to a high of 3.85% in March. Rates are now up almost a quarter-point from the mid-November record low of 3.31 percent. For a 30 year jumbo the 2013 high in February was 4.21% according to bankrate.com.
The three month mortgage trends can be viewed here.
The Mortgage Bankers Association expects rates to hit 4 percent in the second quarter of this year.
We could see rates of 4.4% by the end of 2013
Having rates increase more than one full percentage point does start adding up to real money in a household budget. Combine these increased rates with low inventory and buyers are surely feeling the pinch.
For agents these rising rates are creating pressure to find the right home quickly for their buyers and to encourage potential sellers to get into the market before rates escalate.
How high do you think rates will go this year?