Mortgage rates have been at a historical low in late 2020 and throughout 2021. However, it appears this trend may be about to change.
Here is information gathered from Realtor Magazine:
“A sharp increase in mortgage rates is causing home buyers and refinancers to pause. Total mortgage application volume, which includes home purchases and refinancings, dropped 7% last week compared with the previous week, the Mortgage Bankers Association reported Wednesday.
The MBA reports that the average contract interest rate for a 30-year fixed-rate mortgage rose to 3.14%, up from 3.10% the previous week. That marks the highest level since July.
The National Association of REALTORS® in a blog post last week said that the era of mortgage rates below 3% is likely over. NAR predicts that mortgage rates will average 3.5% by mid-2022.
‘Consumers shouldn’t panic,’ Nadia Evangelou, senior economist and director of forecasting for the National Association of REALTORS®, writes on the association’s blog. ‘Keep in mind that even though rates will increase in the following months, these rates will still be historically low.’”
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