Mortgage rates have been on the rise in recent weeks, and according to Freddie Mac, they are now pushing up toward 7%. This is the highest level since April of 2020, when the coronavirus pandemic first began to have an impact on the economy.
The increase in mortgage rates is due to a number of factors, including the improving economy and the Federal Reserve’s decision to keep interest rates low. As the economy continues to recover, investors are becoming more confident in the market and are willing to take on more risk. This has caused mortgage rates to rise as investors seek higher returns.
At the same time, the Federal Reserve has kept interest rates low in order to stimulate the economy. This has made it easier for borrowers to qualify for mortgages, but it has also caused mortgage rates to rise.
The increase in mortgage rates is good news for lenders, as it means they can charge higher interest rates and make more money. However, it is bad news for borrowers, as it means they will have to pay more for their mortgages.
For those looking to buy a home, now may be a good time to act. Mortgage rates are still relatively low, and with the economy continuing to improve, they may not stay that way for long. It is important to shop around and compare rates from different lenders to make sure you are getting the best deal.
It is also important to remember that mortgage rates are just one factor in determining the cost of a home. Other factors, such as the size of the down payment and the type of loan, can also have an impact on the overall cost.
Overall, mortgage rates are on the rise, and according to Freddie Mac, they are now pushing up toward 7%. This is good news for lenders, but bad news for borrowers. Those looking to buy a home should act now to take advantage of the current low rates, and should also remember to shop around and compare rates from different lenders.
