In the past week we have seen reports indicating that the economy is doing better then expected.
Unemployment remains Low
Retail Sales are Stable
Central Banks Around the World Have Increased Interest Rates
Oil Prices Are Up – Bad for Inflation
Federal Reserve Chairman Expressed Lingering Concerns About Inflation
As a result, interest rates have been moving up. A 30 year fixed rate loan is now at 6.625% to 6.750%. The increase (which is about 3/8 of a percent in the past 2 weeks) increases a mortgage payment about $25 per month for each $100,000 borrowed. Or $75 on a $300,000 loan… so not a big impact on affordability.
These rates are about the same as they were a year ago and they still represent a historically great value.
Guest blogger, Michael Polera, is a loan consultant with Baird & Warner Financial Services. Michael can be reached at 847.818.6029 or by email at michael.polera@bairdwarner.com.
Fran Bailey, Realtor
