What are rates doing?
I’m sure everyone has heard that the government ‘raised the rates’. Or, did you hear that they are ‘sinking’?
Wait. They are up and going down? How is that possible? Who’s right here?
Well….both. Kind of.
Rates are up and down every day. Yes, every day. Whenever there is some sort of ‘event’ such as the Fed ‘raising rates’ or the recent economic news, then you hear about it in the media. They like to use words like ‘plunge’ and ‘sinking’. See this article from Diana Olick. It has some good info and explains pretty well how and why rates fluctuate, but is sensationalized like any other mainstream media:
As you may read in her article’s title, rates are ‘sinking’ and you should ‘lock in now!’ (please insert sarcastic comment here)
Here is an update from a fact based source – Freddie Mac:
“The average 30-year fixed-rate mortgage dropped down this week to 3.97% from 4.01% the week before.”
That is a .04% drop. That’s it.
That said, the trend in rates is definitely going up – just not in leaps and bounds like the media may have you believe. Below is a graph to further illustrate where we sit with historic rates.
With rates this low, you should be buying a home soon…just not rushing to do it tomorrow. Take your time with a real estate professional and get one you love.