The rate on a 15-year conventional mortgage just reached, 4.37% which is its highest level since May 12th.
Chicago, IL (PRWEB) June 10, 2014
Mortgage rates climbed for the 3rd consecutive day on Tuesday, June 10th. This move was a bit of a disappointment for home buyers which hoped to see rates decline after the ECB’s rate cut decision last Thursday. Peoples Home Equity thinks that rates may now trend neutral to positive so mortgage applicants should be wary of a steady continuation higher.
On both Monday and Tuesday of this week, the rate on a 30-Jumbo mortgage (and 15-year conventional loan) rose for the 3rd consecutive day. MortgageNewsDaily’s “Daily Mortgage Rates” page shows that the 30-year Jumbo rates were at 4.00% at the close on Thursday, but have since risen to 4.07% which is the highest level in over a month! The rate on a 15-year conventional mortgage just reached, 4.37% which is its highest level since May 12th.
Peoples Home Equity urges prospective home buyers/applicants to seriously consider whether rates are going to move higher again. On the one hand, the ECB announced a rate cut last Thursday, June 5th, which changed Europe for the better by putting rates in negative territory and pushing their banks to lend. The effect of the policy was an instant decline in U.S. mortgage rates last Thursday. However, ever since last Thursday, mortgage rates have resumed their trend higher. This recent 3 day uptrend suggests that U.S. mortgage rates have shrugged off the ECB’s rate change and are, accordingly, focusing their attention on the Federal Reserve’s policy of scaling back quantitative easing to slowly but surely raise America’s interest rates in the future. This theory is also supported by the fact that home prices are rising, along with sales; this means there is increased demand for homes which naturally leads to high rates. Peoples Home Equity is not suggesting that rates will simply gap up overnight, although they would if the Federal Reserve announces a rate increase, but that a the trend higher may be in place.
If anxious about the current direction of mortgage rates consider speaking to a Peoples Home Equity loan officer today. Their friendly loan officers can answer all lending questions and advise which home loan may be best for applicants. One may also visit the PeoplesHomeEquity.com website today to use their simple online tools to calculate important home loan factors such as: “How Much Can I Borrow?”, “Should I pay points?”, and “Monthly Payment Calculator.”
For further details contact a Peoples Home Equity loan officer today at: 262-563-4026