Mortgage Rates Reach 4 Year High
30-year mortgages rates has climbed to the highest number in four years. Some people believe that at the end of this year it could rise as much as 7 percent. Both new homes and sales of existing homes are also plummeted this year.
Freddie Mac, the mortgage company, reported Thursday that rates on 30-year, fixed-rate mortgages averaged 6.49 percent for the week ending April 13. That was up from 6.43 percent last week and was the highest since mid-July of 2002.
Mortgage rates rose as Wall Street investors fretted that an improving jobs climate could drive up wages and thus inflation, analysts said. Those fears were fanned by a government report last week showing the unemployment rate dropped to 4.7 percent in March.
With real estate being so unstable even more than usual, kind of makes me glad that I rent a house and that I don’t own it. Also makes you think twice about buying a home of your own.