What are Interest Rates Doing?

The average rate on the 30-year mortgage topped 5 percent this week for the first time since April. Freddie Mac said Thursday that the average rate rose to 5.05 percent from 4.81 percent last week. It hit a 40-year low of 4.17 percent in November. The average rate on the 15-year home loan, a popular refinance option, increased to 4.29 percent from 4.08 percent. It reached 3.57 percent in November, the lowest level on records starting in 1991. Rates are following the yields on the 10-year Treasury note, which are spiking on fears of higher inflation. Investors have been demanding higher Treasury yields since the Federal Reserve began its $600 billion bond-buying program to boost the economy. However rates are still extremely low by historical standards. Home prices remain depressed and even with a slight uptick in Interest Rates there are many values to be had. Rates are probably going to continue to rise so if you are thinking of purchasing you should get going!