Well, we knew it wouldn’t last! Mortgage rates are on the rise. If you were looking to take advantage of the record low rates then now is the time to do it. You may only have a day or two before the record low mortgage rates disappear. Don’t panic though; they aren’t increasing by that much. You can expect to see an increase of about 0.20% in the 5 year fixed rate over the next few days. Some lenders will also increase the increment on their variable mortgage rates for new mortgages by about 0.10%.
This was hardly unexpected, as bond yields have been edging up over the past few weeks. The mortgage lenders have been doing a good job holding mortgage rates as low as they have been for so long. Not because of their generosity, but because it’s still early in the year and they’re trying to gain as much market share as possible. It’s not expected that bond yields will be shooting up over the next year so although the record lows are gone for now, you won’t see any major changes in the mortgage rate landscape. What’s the bottom line? If you can take advantage of the record low rates then you should do it, but don’t panic if the timing’s not right for you.