Today’s Rising Rates Compared to History – Are They Still a Good Deal?

The home financing market looks much different now than it did just 6 months ago.  The rock bottom rates from the last couple years are gone.  Conventional interest rates are now 4.25%, pushing 4.5% soon!

The Fed just made the 1st of 6 rate increases for this year.  My guess is mortgage rates could be pushing 5% by summer 2022. 

I am seeing more people looking at the 5-year and 7-year adjustable rate arms to save ¼ to ½%.  This could be a good move if you plan on moving in the next 5 to 7 years.  I’d consider adjustable rates risky if you are hoping rates drop and you can refinance out of an adjustable rate to a fixed rate.

 

International Events that Affect Rates

The war with Russia and Ukraine has the interest market in unknown territory.  Depending on how far and how long this war continues, the future of mortgage rates is truly unknown. Rates could go either way!

 

But Let’s Put 4% Mortgage Rates in Perspective…

While rates are not 2021 rock-bottom, they are still historically low. So what does that mean?  Take a look at the graph below (click to see larger) for the average 30 year mortgage interest rates over the last 20 years.

Rates in the low 4’s are still on the lower end of average rates over time. If you, a friend, or a family member is in the market to buy a home, there is still a good opportunity to get a historically low mortgage rate.

 

I Feel Blessed with Amazing Connections

As always, I feel blessed with all the wonderful connections I have made over my 35 year lending journey in Northern California. I do my very best to take exceptional care of each of my clients and anyone you send my way!  I always attend loan closings and make myself available on your schedule (including evenings and weekends).  Please call me at (916) 628-1864 or email me at dave@homeloansbydave.com if there is anything I can help you with or if you have any questions.

 

David Banks
NMLS #332232 | DRE #01371423
Senior Loan Officer

Call or Text: (916) 628-1864
Email: dave@homeloansbydave.com

**Affiliated with Integrity Mortgage (NMLS# 794419 | DRE# 01441803)