Today, Apr 24, 2018, the mortgage rates reached 4-Year highs. The good times of low-interest borrowing are fading away during 2018. American borrowers and investors will pay more for home mortgages and other forms of credit.
Today, the 10-year Treasury yield ticked above 3% for the first time since January 2014. This affected all borrowing costs for businesses and shoppers. Mortgage Rates increased accordingly reaching their highest rates in more than 4 years. These trends will continue in the near future due to the Fed’s increasingly restrictive monetary policy outlook, the increased amount of Treasury issuance to pay for the tax bill (higher bond issuance = higher rates), and the possibility that fiscal stimulus results in higher growth/inflation.
Borrowers are definitely seeing rates that are an eighth of a point higher from last week and, in many cases, a quarter of a percentage point higher than 2018’s best levels.
The three 30-Year main mortgage rates increased to high levels as follow:
a. FHA Mortgage Rate reached 4.45%
b. Conforming Mortgage Rate reached 4.64%
c. Jumbo Mortgage Rate reached 4.69%
It’s safer to assume that this trend will continue. It makes much more sense to remain heavily-biased toward locking as opposed to floating mortgage rates. Our personal suggestion is to talk with your lenders and/or mortgage officers to take the best action in your home buying investments.
Source:
• Mortgage Rates Push Farther Into 4-Year Highs
http://www.mortgagenewsdaily.com/consumer_rates/848664.aspx
• Mortgages, other loans get pricier as 10-year Treasury rate tops 3%
https://www.usatoday.com/story/money/2018/04/24/hborrowers-beware-era-low-interest-rates-winding-down/542899002/