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The relatively low mortgage rates will eventually come to an end. According to Bankrate’s national survey of lenders for a 30-year fixed-rate mortgage loan rates averaged 3.24 % and 2.49% for a 15-year fixed-rate home loan.
Experts predict that rates will continue to trend higher in the coming weeks.
In recent U.S. economic news, the number of people filing new unemployment benefits claims dropped to a 19-month low.
While on the other hand, the jobs report appeared dull, in September the American employers added only 194,000 jobs showing that the recovery is yet far away.
This added further pessimism to the overall outlook with supply chain issues and fears of inflation also persisting.
The chief financial analyst of Bankrate, Greg McBride, said that mortgage rates will continue to move up in the coming weeks as inflation is rising and the Federal Reserve to begin tapering bond purchases.
The 30-year rates are expected to average between 3.25 % to 3.5 %, in November he added.
The National Association of Realtors, senior economist and director of forecasting Nadia Evangelou, seconds the thoughts.
she said that the Fed is likely to reduce the pace of its purchases of long-term Treasury’s and mortgage-backed securities in next month, which will drive up rates.
McBride believes that inflation would be the main factor that will influence mortgage rates into early 2022.
Even with the recent increases in mortgage rates, they are still lowered so don’t wait much longer to refi or to purchase says, McBride.
As predictions are that home prices are likely to be more expensive next year.
However, before making a hasty decision suggestion is to look at what you can afford, and then make a wise decision.
Reference Source: Bankrate
