A rise in interest rates is one sure sign of economic recovery. Today Freddie Mac released it weekly rate survey and today’s rate marks the highest in 2013. Starting January at 3.340%, today’s rate of 3.530% is a signal of what may come as consumers attempt to purchase new homes or refinance their existing home. While the rates are at their highest level, after one month of activity, there is no need for panic but smart consumers gather such information to guide their decision making process.
The rates apply to traditional 30 Year Fixed Rate conforming loans and are used as an industry standard in gauging movement.
Each week during the month of January rates have ticked up. Again, while 20 basis points is not that big of a deal in dollars and cents, it could be deadly for consumers on the margins or who have very little wiggle room in qualifying their debt-to-income ratios. The end result is a difference of approximately $218 per year.
As we move into February, those consumers who have been watching rates will be paying more attention, as during the past quarter of 2012 home prices were also on the rise. Should the economy pick up steam, it is forecast the 3.530% could easily climb closer towards 4.000% and beyond.
Here is a snapshot of mortgage rates during the month of January.
- Jan. 31st - 3.530%
- Jan. 24th - 3.420%
- Jan. 17th - 3.380%
- Jan. 10th - 3.400%
- Jan. 3rd - 3.340%
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