TODAY’S INTEREST RATES
As discussed in last week’s update, The FED put in their statement that a bond taper would be coming soon.
The full effect of that over that afternoon and the following days has been a major decrease in
Mortgage Backed Security (MBS) prices which has equaled higher interest rates of about .125 to .25% higher.
We’ve discussed this before, but this quick rate increase happened and the FED didn’t even say when they were going to taper.
I expect rates to rise even more when they actually do taper.
Below is a good infographic going over estimates of where rates will go and
Some other useful information for home buyers.
Remember that rates going up usually affects buyers more than housing prices going up.
If rates go up 1% – that’s about a $165 higher payment on a $300,000 loan.
Homes prices have to go up $37,000 for the same payment increase.
See below for interest rates for well qualified borrowers.