Yes, interest rates are up, if you have not heard about it lately.
(I’ll make the comparison in the paragraph below)
The big I word (INFLATION) is on the minds of Fed. lately. National gasoline price averaging $3.05, with California at $3.50, when Memorial Day weekend kicked off the summer season. Local grocery prices have rising everything from tomatoes, strawberries, oranges to milk, eggs and toilet papers from 5 to 10 percent. The Maestro Allen Greenspan, even not in his throne, still had the impact of the world market, had worn of the red hot stock market of China, almost immediately, Chinese market had its quick correction of 5 -8 percent.
It did had ripple effects to the U.S. stock market, we have seen the bonds sold off last week and thus the interest rates are on the rise.
On average, the 30-year fixed rate had gone up to 6.625%, and 1/5 ARM to 6.5% for conforming loans. And 6.875% for jumbo 30 -year fixed and 6.625% for jumbo 1/5 ARM. All are approximately 0.5 point raise.
Let’s put this into calculation, if you have a $500,000 loan, you are paying extra $166 a month compared to last month.
You are missing the market, if you are playing the ineterest game. Stop waiting, because the numbers are not just sitting there. It will go up again later this year, perhaps sooner than you think.