The average mortgage rate for a 30-year fixed loan has jumped to 3.02% after three weeks of numbers holding steady. According to Freddie Mac, this marks the first time since July 2020 that interest rates have passed 3%.
What does this mean for you? Primarily, if you are considering buying a home, it may be in your best interest to get the process going sooner rather than later to lock in the lowest rates possible. Due to the most recent stimulus package, spending has increased. Sam Khater, chief economist for Freddie Mac, says this is creating supply chain shortages that are causing downstream inflation, leading to higher mortgage rates.
However, Freddie Mac thinks interest rates will still remain low for the rest of the year. They explain, “While this is a modest rise from 2020 averages, the recent vote by the Federal Reserve to keep interest rates anchored near zero should keep rates low.” Additionally, Freddie Mac projects the rise in average mortgage rates over the next couple months to be more muted in comparison to the last few weeks, which supports a strong spring market.
As a home buyer, there’s no better time than the present to get the best bang for your buck. To begin the process of finding your dream house, contact your local Surterre agent today.
