Key Indicator of Mortgage Rates Ends Rise
After 5 days of losses Treasury Bonds made up some recently lost ground as the 10 year yield came back to 2.045% after approaching an 11 month high of 2.08% last week. The ten year note is a benchmark used as an indicator in the mortgage backed securities market, which has a direct impact on mortgage rates. The benchmark rate began the year 1.76% and has risen in the last few weeks after a series of promising economic news and data.
30 Year Mortgage Rate Still Below 4.0%
Mortgage rates have crept up during the recent movement in the treasury market, however, the 30 year rate still remains very close to all time lows steadying out at 3.77%. What does this mean for potential homeowners? While the recent trend on rates has been slight upward movement, rates still remain deeply below their historic averages. Remember, it was only a few years ago, when homeowners got excited about rates below 6%. Historically low rates and a good job market in the greater DC area are two of the factors that have kept the local real estate market strong, especially in close-in suburbs such as Arlington, Alexandria and Mclean.
The City Smart Living team works closely with several reputable, local lenders offering great rates and service. If you want to learn more about different loan programs and how the rates can affect your purchasing power, call us today at 571-969-7653.