Mortgage Rates Slowly on the Rise Again
Although mortgage rates continue to remain close to record lows, they have been on the rise as of late, and have been increasing for three consecutive weeks now. Three weeks ago, 30-year fixed mortgage rates hit the lowest mark they have ever been at since long-term mortgages were introduced in the 1950s, at 3.49 percent. Last week, the average mortgage rates rose to 3.59 percent, and this week they are up once again, at 3.62 percent.
Although the current rates are still incredibly low, they are beginning to trend upwards and may continue to do so as the housing market slowly continues to recover. Because of the low mortgage rates, home sales have increased this year as new homebuyers have taken advantage of the opportunity to secure a mortgage at an all-time low rate. However, sales haven’t quite rebounded the way that experts predicted they would, largely due to first-time homebuyers having difficulty qualifying for home loans or coming up with the larger down payments now required by many banks in order to secure a mortgage.
Still, new homes are still being built all over the country, and builder confidence continues to be at its highest level since 2007. Builders in July requested the most building permits since August of 2008, which will certainly help to satisfy the demand for newly-built homes in the coming year.
The mortgage rates for 15-year fixed mortgages also rose to 2.88 percent this week, up from 2.84 percent last week, and 2.80 percent three weeks ago, which was a record low for 15-year fixed mortgages.