When the year first began, many economists and mortgage analysts assumed that the mortgage rates would rise higher and higher in 2019. Well, for the first two months of this year this trend did not occur. In fact, the opposite happened. You can see previous blog posts about the low mortgage rates staying put.
However, for the first time this year we have a slight rise in mortgage rates. Freddie Mac reported the following:
While mortgage rates very modestly rose to 4.41 percent this week, they remain below year-ago levels for the fourth week in a row. In late 2018, mortgage rates rose over a full percentage point from the prior year, which was one of the main reasons that weakness in home sales continued into early 2019. However, the impact of recent lower rates and a strong labor market has led to a rise in purchase mortgage demand as we start the spring homebuying season.
Our synopsis of what this means is similar to Freddie Mac’s. The spring homebuying season is upon us and the Fed is trying to raise interest rates just slightly because they know the demand will be there regardless. Yet another reason to lock in a good rate while you can before it goes up!