The sharp rise in mortgage rates was the biggest that the housing market has seen in over 3 years, according to a Freddie Mac spokesperson. These interest rate increases mirror the similar increases in the rising yields on Treasury securities as worries about inflationary pressures and continued spending by consumers and businesses have made an interest rate cut less likely.
Higher interest rates may affect the housing market's gradual recovery. Demand appears to be more stable, but inventories of new housing units is still high and this is exerting downward pressure on construction starts and housing prices.
Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.
If you want to learn more about Freddie Mac or see the details of their survey, go to: www.freddiemac.com and click on the link for "Current Weekly Survey". They break down the survey by specific regions in the United States so you can see how your state compares to other parts of the country. They also explain the mission of Freddie Mac.
If you would like to speak with a lender you can find some at my website: www.jelwell.century21bnr.com . You can also speak with your own bank, credit union, or mortgage broker to see what your particular interest rate would be should you decide to finance a home purchase.
John Elwell - REALTOR
Bill Nye Realty, Inc.
Licensed in Florida