Last week mortgage rates rose to over 4% for the first time since March 2012! The average rate for a 30 year fixed rate mortgage is 4.46%. This rise in interest rates will most likely send more buyers out into the market to get a home before rates climb even higher making the homes for sale shortage even greater. On the other hand for some buyers, they may need to adjust the price of homes they are looking at since they are becoming more expensive with higher interest rates.
The number of refinancing applications was down another 5% last week – a plunge of 40% since just back in May! For many homeowners, a refinance just is no longer worth it if rates are 4% or more.