The Scranton Times reported this week that interest rates for 30 year fixed loans have risen.
The mortgage interest rates can rise and fall driven by our economy and other economic indicators.
For several weeks we saw interest rates below 4%. That is a record low in our country.
- In 2005 a mortgage for $100,000.00 at 6.5% would cost $6,500.00 per year in interest.
- The same loan last month at 3.92% would cost $3,920,00 per year.
The interest rate has a direct bearing on how much home you can afford to buy.
- Currently it is reported the average 30 year fixed rate mortgage jumped to 4.08%. How long interest rates will stay this low is anyone’s guess.
If you have been considering a home purchase it’s a good time to contact a Realtor and explore the current home inventory. It is doubtful that interest rates will drop again. More than likely they will be inclined to increase rather than decrease.