The dream to buy below 6-percent has vanished this week as mortgage rates rose above 6-percent this week.
According to Freddie Mac, the average for the 30-year fixed rate mortgage was at 6.02 percent, up from 5.89 percent last week. The 15-year fixed rate mortgage rose to 5.36 percent, up from 5.22 percent and point averages rose to 0.6.
Frank Nothaft, Freddie Mac's chief economist, had the following to say, about the increase: "Financial markets are speculating about what the Federal Reserve Board will say when it meets next week."
"And it looks like the market is taking bets that the Fed will soften its language and raise rates sooner rather than later. As a result, bond yields drifted higher and with them went mortgage rates," Nothaft said.
Home sales will continue to be high, as some will buy now due to the increase, as they may fear a greater increase in the future. Others may wait to see if rates dip again, which no one is certain as to whether or not they will. It is likely, though, that as the economy becomes stronger, rates will be more likely to rise than fall.
For more rate information, visit Bankrate.com or Freddie Mac.
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