Mortgage Rate History: Lock your Rates!!

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After a slight drop last week, #mortgagerates are rising. According to @Bankrate 's (, weekly survey of large lenders, the benchmark 30-year fixed-rate mortgage rose to 4.58 percent from 4.54 percent.

Want to get ahead of rate increases? CONSIDER LOCKING IN YOUR MORTGAGE RATE NOW!!! You may have to pay a small fee for a lock though it's a great strategy, offering security in the face of possible rate increases. 

Mortgage rates have increased in 9 out the past 10 weeks, and they may continue to rise. The Fed raised it’s benchmark interest rate to the highest level in ten years. Chairman Jerome Powell cited impressive job gains and low unemployment rates as signs that the economy is ready to move forward with planned rate hikes.

The hike is .01% lower than the 52-week high of 4.59%, and is 0.63 % points higher than the 52-week low of 3.95%.

Mortgage rates respond to market forces — specifically, to the needs of bond investors. The Federal Reserve exerts an indirect influence on mortgages.

Sometimes mortgage rates go up when the Fed increases short-term rates, as the central bank’s action sets the tone for most other interest rates. 

But sometimes mortgage rates fall after Fed raises. In June ’04 the central bank made raises 17 times in two years and mortgage rates fell during that summer and fall, which made investors less concerned about inflation, so mortgage rates fell.

They eventually rose, and were higher in June 2006, at the end of the rate hikes, than they were at the beginning in 2004.

In 2017, housing economists predicted mortgage rates would rise. Instead, they remained fairly steady despite three Fed rate hikes. Though rates began to steadily raise at the beginning of 2018, the prior rate hikes of ’04-’06 show that the central bank’s actions aren’t predictive.

Consult with your Realtor for lender recommendations, to get professional, up-to-the-minute advice and information on how to make the best mortgage decisions and ASK about locking your rate while you house hunt!!

Next Level East Bay Real Estate Representation! 

PATTY ROGERS | The GRUBB Co. | Broker Associate, Lic #00669968  

Excerpts for this post courtesy of @amandadixon

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