Fixed mortgage interest rates are at their highest point in more than a year, and aren't showing any signs of changing course.
Interest rates have slowly been creeping up over the past few weeks, marking a turnaround from last year's downward trend, according to weekly averages released by Freddie Mac. Though interest rates have yet to even hit 4 percent, they're inching closer every week.
The 30-year fixed-rate mortgage rate hit 3.81 percent this week, up from last week's 3.59 percent, even beating out last year's rate of 3.75 percent. The 15-year FRM barely beat last year's 2.97 percent, averaging 2.98 percent this week.
Mortgage rates have fluctuated quite a bit this year. They started climbing at the beginning of the year, before falling in early May to 3.35 percent, which is almost as low as they go. Since then, they've been steadily marching upward.
The thrust behind climbing rates is actually the positive economic news coming out of the housing market this month, and most analysts seem to feel pretty solid in saying that the recovery is here to stay.
According to the National Association of Realtors, most home prices are continuing to increase. Homes sales are also up, despite reports of low inventory.
If you are currently in the market to purchase a new home, now is the time to get under contract and lock in your rate. If you need any further guidance, do not hesitate to contact me.