The average 30-year fixed rate mortgage jumped another 6 basis points this past week to 4.02%, Bankrate.com reports. Fueled by industry expectations that a Trump presidency will increase corporate profits and cut taxes, the increase in rates have been an unwelcome surprise to buyers across the country. Just a month ago, the average home loan stood at just 3.34%.
Despite a small drop in affordability as a result of higher rates, real estate agents point out that it’s unlikely to greatly affect the current market; the high-demand and low inventory of homes for sale will balance any decrease in buyers. In fact, bidding wars continue to be common across the country.
For home shoppers in our region, it’s unclear where rates are headed. Bankrate.com’s panel of experts remain divided, with some lenders predicting that rates will continue to increase, where others believe they’ll remain stagnant or even decrease.