You hear it on the news all the time: mortgage rates are not going to stay this low for long… Well, that time may have finally come. Reuters reported today that mortgage rates rose for the first time in three weeks to over 5%. The numbers are pulled from a survey from Feddie Mac, which is the second largest U.S. mortgage finance company.
In the previous week, the average mortgage rate on one of the most popular loans – the 30-year fixed was 4.93%. With the new increase, mortgage rates are now averaging 5.05% for the week ending Feburary 25th. This is quite an increase compared to the record low last December of 4.73%.
This increase may be temporary, however, experts do agree that mortgage rates will more than likely rise in the long run. The unusually low rates currently combined with the home buyer tax credit and low property values make this an ideal time to buy.
If you are looking to buy a home, be sure to take advantage of the home buyer tax credit which is scheduled to expire after April 30th. Home buyers must have their purchase agreement signed by that date to qualify.
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