As a sluggish winter for the housing market comes to an end, mortgage rates have increased ever so slightly; this is a good indicator that the market is warming up, much like the weather itself.
The thirty (30) year fixed-rate mortgage (“FRM”) increased by .04% from 4.08% to 4.12%; the first time in over half a year that the mortgage rates have increased over the course of two consecutive weeks. Similarly, the fifteen (15) year FRM grew to 3.6%; the five (5) year treasury-index hybrid also increased to 3.66%.
The increase in mortgage rates is a good indicator that the market is improving, despite significant data indicating that consumers are very sensitive to changing rates; applications for mortgages tend to decrease in direct relation to increased mortgage rates. Despite the fact that the 30 -year FRM is still lower than it was last year, the increased rates could foreshadow a slow housing market in the coming weeks; time will tell.
At the Chernov Team, we understand that knowledge is power; and that includes understanding how the housing market reacts to changes in mortgage rates. At the Chernov Team we know that whoever shows up to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.