Even though we are still at historic low mortgage rates we are seeing a decrease in how much home Buyer’s can qualify for.  Many of today’s buyer’s have no clue that for a large portion of us, even with rising rates they are still low.  I can remember in the early 1980’s when 18% was common.  In the early 1990’s 7% was a great rate.  I ran across this article in The MReport that shows we are currently approaching 2011 levels.

Mortgage Rates Approach 2011 Levels

Mortgage rates across the board touched their highest level in seven years moving up to 4.61 percent, after being stable for the past few weeks according to the Freddie Mac Primary Mortgage Market survey.

The weekly survey revealed that 30-year fixed-rate mortgage was recorded at 4.61 percent with an average 0.4 point during the week. The rates during the same period last year were 4.02 percent. The 15-year fixed-rate mortgage increased to 4.08 percent from 4.01 percent last week and was up from 3.27 percent during the same time in May 2017. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) increased from 3.77 percent last week to 3.82 percent. A year ago the rate for the five-year ARM was 3.13 percent.

“Healthy consumer spending and higher commodity prices spooked the bond markets and led to higher mortgage rates over the past week,” said Sam Khater, Chief Economist at Freddie Mac about the uptick in rates this week. “Not only are buyers facing higher borrowing costs, gas prices are currently at four-year highs just as we enter the important peak home sales season.”

To read the entire article click here

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