Mortgage rates for 30 year fixed rose above 4% this week for the first time since November of 2014. Although they just now broke the 4% barrier they have been climbing the last 2 weeks. The 30 year fixed rate averaged 4.04%, up from 3.87% 2 weeks ago. The reason is that employment data is looking strong which is driving up U.S. Treasury yields. There have been rumblings that we’d see the fed increase it’s rates. This is part of the cause since the Fed has said it’s watching employment numbers carefully.
This quote is from housingwire.com
“Mortgage rates rocketed higher following a stronger than expected monthly employment report. The good news on the job front further solidifies the notion that the Federal Reserve will likely begin raising interest rates soon, perhaps in the third quarter of this year,” analysts with Bankrate said about the report.
“The job market is one area the Fed has specifically pointed to as needing to show further improvement before they’d be comfortable raising short-term interest rates, and further improvement is what we have seen,” continued Bankrate
So if you’re considering buying now or later, keep a close eye on these rates.