The national average 30-year fixed rate mortgage surpassed the 4% mark for the first time since July, according to government mortgage giant Freddie Mac. The current rate stands at 4.01%, up from last week’s average of 3.96%.
While rates have slowly increased in the past month, industry experts are quick to note that rates remain historically low. In fact, the average 30-year fixed rate mortgage hit 8.52% in May 2000! The lowest point occurred in November 2012 at 3.31%.
Freddie Mac’s chief economist, Sean Becketti, suggests that the rate hikes may be due to rising consumer confidence. This economic measure indicates overall optimism that consumers feel about the economy, as well as their personal financial situation. The most recent consumer confidence report in December topped estimates according to CNBC. The positive outlook is largely due to a strong labor market.