Long-Term Mortgage Rates Hit a Seven-Year High
It Will Cost You More to Buy a Home The housing market topped a new threshold over the past week. Buoyed by a strong economy and a series of interest rate increases by the Federal Reserve, thirty-year fixed mortgage interest rates reached 4.61 percent – the highest number since May of 2011. Rates crossed the 4 percent threshold in the week of January 11 and they have been on a relatively steady rise since then. If this pace continues, we may hit 5 percent before the year is out. Should rising interest rates deter you from buying a home? Not necessarily, but it may cause you to re-think your definition of an affordable home.