Mortgage Rates Near Historic Lows but Will Move Higher in the Coming Years
mortgage rate is at 4.25 percent, an increase from last week's average 30 year rate of 4.17 percent. Mortgage rates moved higher this week rates but are still very low, historically speaking.
Mortgage rates have remained near record lows for several years now and will move higher in the coming years. Despite the fact that rates are near record lows, loan demand is still sluggish. The Mortgage Bankers Association reported mortgage applications decreased 2.7 percent for the week ending August 8, 2014.
In the coming years, rates will be moving higher as a result of stronger economy growth and the Federal Reserve policies. Joe Mollica, of Connecticut Financial Mortgage, said the following regarding rates, the housing market, and the Federal Reserve:
It is widely expected that the Fed will begin raising short term interest rates some time in 2015. This is supported by signs of economic growth, be it at a slow pace, like the 2nd Quarter GDP reaching 4% and job increases exceeding 200,000 for the past 6 months.
Listed below are average mortgage rates today:
Conforming Mortgage Rates
Jumbo Mortgage Rates
RatesORama.com Average Mortgage Rates