National mortgage rates have reached a new high for 2015 this February. 30-year fixed mortgage rates rose from 3.9 to 3.96 percent according to a survey of the top U.S mortgage companies. Although this is the high for this year, it is still a huge improvement from last year’s rate of 4.49 percent.
As the United States continues to pull itself out of the mortgage crisis that began in the 2008 market collapse, rises like this week’s tend to make financiers edgy. Fortunately, mortgage companies still see the current climate as stable and anyone who plans on getting a mortgage in the near future should be very pleased with the current state of the economy.
Speculators also believe that investors overreacted to the news that Greece was in talks to settle an agreement with their creditors. Mortgage companies see the rise as an illogical reaction, claiming that rates shouldn’t jump so much in such a short span of time.
There is also added pressure to rates due to the upcoming talk from Jan Yellen, chairwoman of the Federal Reserve. There is speculation that the Fed will raise the federal funds rate in the summer, and Yellen will may make some indication of the validity of this claim in her speech.
Investopedia suggests that the current rates may only climb from this point on and this may be the perfect time to research mortgage companies and start the process of taking out a mortgage. There are a few reason that rates are likely to increase in the near future.
While raising rates may concern some, those who have been watching the economy for the past few decades are not surprised. The mortgage rates have reached a historic low the past 15 months and, as the financiers say, what goes down must eventually come up. In 1981, the rates reached an astronomical 16.63 percent as the Fed raised rates to combat out of control inflation. Compared to 16.63 percent, 3.9 percent doesn’t seem quite so bad.
Another factor likely to raise rates is the strengthening economy. To lessen the effects of the recession, the Federal Reserve has kept rates low to stimulate borrowing and spending, however, as employment rates rise and the economy stabilizes, it is likely that the Federal Reserve will begin to allow rates to fluctuate with the market again. Keeping in mind that average of the rate the past 30 years is around 8.5%, it seems unlikely that that rates will fall any lower than they have been in the past few months.
Jillian Eaton is an financial writer. Jillian writes for Fusion 360, an advertising agency in Utah. Find her on Google+.
As the United States continues to pull itself out of the mortgage crisis that began in the 2008 market collapse, rises like this week’s tend to make financiers edgy. Fortunately, mortgage companies still see the current climate as stable and anyone who plans on getting a mortgage in the near future should be very pleased with the current state of the economy.
Speculators also believe that investors overreacted to the news that Greece was in talks to settle an agreement with their creditors. Mortgage companies see the rise as an illogical reaction, claiming that rates shouldn’t jump so much in such a short span of time.
There is also added pressure to rates due to the upcoming talk from Jan Yellen, chairwoman of the Federal Reserve. There is speculation that the Fed will raise the federal funds rate in the summer, and Yellen will may make some indication of the validity of this claim in her speech.
Investopedia suggests that the current rates may only climb from this point on and this may be the perfect time to research mortgage companies and start the process of taking out a mortgage. There are a few reason that rates are likely to increase in the near future.
While raising rates may concern some, those who have been watching the economy for the past few decades are not surprised. The mortgage rates have reached a historic low the past 15 months and, as the financiers say, what goes down must eventually come up. In 1981, the rates reached an astronomical 16.63 percent as the Fed raised rates to combat out of control inflation. Compared to 16.63 percent, 3.9 percent doesn’t seem quite so bad.
Another factor likely to raise rates is the strengthening economy. To lessen the effects of the recession, the Federal Reserve has kept rates low to stimulate borrowing and spending, however, as employment rates rise and the economy stabilizes, it is likely that the Federal Reserve will begin to allow rates to fluctuate with the market again. Keeping in mind that average of the rate the past 30 years is around 8.5%, it seems unlikely that that rates will fall any lower than they have been in the past few months.
Jillian Eaton is an financial writer. Jillian writes for Fusion 360, an advertising agency in Utah. Find her on Google+.