Mortgage interest rates have been climbing in the past few months. Will that trend continue?
By Terence Loose | Yahoo Homes – Tue, Oct 15, 2013
If you’re in the market for a home or thinking of refinancing the one you own, it’s safe to say that you have been watching mortgage interest rates closely. So you’ve seen that over the past few months they’ve had a disturbing trend: Rates are going up.
For instance, according to the “Weekly Primary Mortgage Market Survey®” conducted by Freddie Mac, the average interest rate for a 30-year, fixed-rate mortgage back on May 2, 2013 was 3.35 percent. As of September 12, 2013, the rate climbed to 4.57 percent – more than a full percentage point. On a $300,000 mortgage, that could mean an extra $210 a month, and over $75,000 in interest over the life of your loan. Ouch!
So if you’re on the fence about buying a home or refinancing, one of the most important questions to ask is whether that number will go higher. Could it actually reach 5 percent by 2014?
We did some digging on the subject and looked into reasons rates are climbing – and how fast.