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Last updated on May 16th, 2022 at 08:41 am
Mortgage rates have been revolving around all-time lows for one year, but they will begin a sustained rise.
In the coming months, economists are expecting the rates to rise because the interest rates on home loans have been cyclically rising, retreating, and repeating.
The National Association of Realtors will release its report on home prices and home sales along with weekly jobless claims data and new home sales for last month.
Even if the report by itself doesn’t move mortgage rates, but the data will give new insight into the burning housing market.
Last month the Realtors trade group said that home prices were up 13 % since the past year, even if inventories of homes for sale remained very low.
Based on market conditions, headlines, and other economic indicators, mortgage rates rise and fall.
Even if it is difficult to understand the working of rates, one easy thumb rule is to understand that the 30-year fixed-rate mortgage is closely associated with the 10-year Treasury yield.
When that rate goes up, the 30-year fixed-rate mortgage also follows suit.
The other factors influencing the rates for fixed mortgages are demand and supply.
When mortgage lenders raise rates to decrease demand and when their business is not doing well, they reduce rates to get more customers.
Reference Source: Bankrate
