Mortgage rates have risen sharply since early November for a couple of reasons. First, you should understand that the better the economy is, the more likely it is that interest rates will rise. Trump’s win in the election sent the stock market to new highs as investors saw the possibility that promised tax cuts will improve long term profits.
Secondly, the FED has been eluding to higher rates since last spring, and in December this became a reality as they raised short term interest rates for the first time in a year. By the FED’s next meeting last week their policy statement made it clear that job growth and inflation are still a concern, leading investors to believe that there is still room for more rate hikes this year. That said, there isn’t any indication that will happen right away. This helped level off interest rates, bringing some stability to the market.
Housing data appears to show that Pending Home Sales improved by 1.6 percent in December. This puts our current housing numbers at historically healthy levels.
Everything said, this means you can still get an APR under 4% on 15 year loans and in the low 4’s with the 30 year programs.
If you have been waiting to refinance or still have mortgage insurance you should take a look while mortgage rates are still low. Call me for custom options at 801.599.5363 today or get a Quick Quote today!