What Homeowners Need to Know Right Now about Rate Changes – Irvine Real Estate – Irvine Homes for Sale

by Robert Mack on December 19, 2010

in Latest News, Sellers

Mortgage rates have seen a steady increase over the last several days. Most experts agree that the increase is being brought about by increased yields on Treasury bonds.

Treasury bond yields have been on the rise for several days now as they go up, so do mortgage rates. On Thursday, a fixed rate 30-year mortgage was averaged at 5.09 percent, a new 6 month high.

According to Freddie Mac, for the week that ended on Thursday, the rate was 4.83 percent. One month ago, this same type of mortgage was at a low of 4.1 percent.

Many experts are now beginning to express concern on how fast the rates are increasing. For some, they have not seen this level of activity in rate increases in nearly fifteen years.

There is little debate now that this consistent and sudden increase in rates is being caused by consistent and sudden increases in the T bond market. For instance, the yield on ten-year notes, (this particular note is the one that most affects mortgage rates), closed on last Thursday at 3.473 percent.

via nothingbutbuzz.com for the complete article

Over the last week or so, interest rates have really gone up! It’s crazy because historically they are so low, however the fact that they were in the low 4’s only a couple of months ago is making it hard to swallow for some buyers!

Posted on Irvine Orange County Real Estate Market News

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Post by Robert Mack

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