Mortgage Rates have recently hit a 7 year high. What is the reason for the increase? Well anytime the economy is good you can expect the rates to go up. There are countless reasons why but to keep it simple here is the low down:
- Better than expected economic numbers coming out weekly.
- The 10 year treasury yield hitting its highest point in 4 years.
- Unemployment continues to drop causing inflationary risk
Bottom line….we are enjoying a strong economy and the stronger the economy is, the more it costs to borrow money.
What does this mean for consumers and potential home owners? (On the average loan amount, every 25% increase on interest rate will increase your monthly payment by around $30/month)
KPLCTV just did a news segment this week devoted to the mortgage rate increase. Hear what Craig Boudreaux of Louisiana Mortgage Associates myself had to say about how this will impact buyers in Southwest Louisiana.
An experienced loan officer has access to mortgage programs that allow the best rate at the lowest cost for a buyer. When you meet with a loan officer they will go over what to expect when obtaining a mortgage
Other good news was just released regarding our economy and mortgages.
Don’t fret, it is still a good time to buy a home in SWLA. If you have been thinking about purchasing, I would jump off the fence and move forward. Contact me Marilyn Boudreaux, Century 21 Mike D Bono & Co.s to get started with the process!
