The Wall Street Journal reports that the average rate for 30-year fixed-rate home mortgages has increased above 3% for the first time since July of last year. Home buyers who closed on a purchase, or homeowners who refinanced, recently may have had optimal timing. Rates have risen –or held steady– for five consecutive weeks. With the US economy improving, and with interest rates on US Treasury securities rising (which affect home loans), it appears that home mortgage rates will probably not decrease from this point–at least not for awhile.
Most Taos buyers are not extremely interest-rate sensitive, so a modest rise in rates will not disqualify them from buying a home or condo. If rates do continue to edge up, we may see the volume of re-financings diminish.
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