Well it only took a "Fed Minute" to destroy mortgage rates. Since Jan 6, we've seen perhaps the fastest increase in rates as they approach the 4% landmark. Many experts don't think it's even close to over. This move is really hurting those benefiting from a VA loan as well.
What's the Fed doing?
The Fed minutes released on Jan 6, crushed the mortgage markets and they've been in a free fall. Recently we've seen a bump to the positive, i.e. rates rallying slightly lower, but this is more aimed at the sell offs in the stock market and will not be long-term.
Rates are going up.
How high you ask? Allow me to get out my crystal ball? Hah, well seriously, who knows. I somewhat agree with the experts that say 4.5% is in our near future, but I think the major shock and awe has already happened. I feel that rates will vacillate in the 3.75% to 4.25% for 30 year money.
Is there a better option?
Yes. Adjustable rate mortgages, such as 10/6 ARMs are leading the way since you can get a rate about .5 to .75% lower than a 30 year fixed. So, if you don't plan to be in the home past year 10, it's a great option.
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