Mortgage rates are still near record lows but they have been inching up slightly as the U.S. economy shows signs of improving.
Mortgage rates are still near record lows but they have been inching up slightly as the U.S. economy shows signs of improving. The 30-year fixed-rate mortgage reached its highest level in more than six months averaging 3.63 percent.
Mortgage rates are projected to rise higher this year which could make buying a home more expensive. But some housing analysts say that the higher rates could actually help aid the housing recovery.
Home buyers who have been lingering on the market may finally move forward on a purchase. The increasing rates may drive home the point that while borrowing is still cheap, they’d better lock in a rate now before rates move any higher.
Andrea Heuson, finance professor at the University of Miami, says that the increase in mortgage rates also interestingly coincides with increased demand for loans across U.S. businesses—which also could prove positive for home sales. Commercial and industrial loans reached $1.5 trillion, up more than 12.5 percent in January from a year earlier. “The recent increase … bodes well for the future of the U.S. economy,” Heuson told Fortune. When businesses borrow more, that usually boosts the economy, from job growth to increasing consumer confidence as well as increasing home sales.