For the first time since late October mortgage rates top 4%! The average rate for a 30 year fixed rate mortgage is at 4.08%, this increase is another sign that the housing market may be starting to turn around. Industry analysts do expect mortgage rates to rise this year but the 30 year fixed rate they predict to be at most 4.5%. Even though the rates may be going up, they are still way below the 7.1% average from 1990 – 2010!
The best advice I can give anyone who is thinking of buying would be to get out there and buy in the near future. There is a shortage of homes for sale on the market which is also causing many multiple offer situations which drives up prices. If you combine the lack of inventory and the increase in interest rates, the window of opportunity to buy at a great price with a great rate is slowly beginning to close! If you are on the fence about buying, now is the time to get off!