Interest rates on loans are beginning to rise.
According to this article published by NAR, mortgage rates have risen above 3% for the first time in several months. Are they going to continue to rise?
The Data
NAR reports that the average rate seen for a 30-year fixed-rate mortgage is currently sitting at 3.02%. 15-year and 5-year rates are still substantially lower, but they are also increasing week-over-week.
As stated in the linked article, NAR believes that the trend will continue and the average by the end of the year will be roughly 3.2%.
The Effects
While increasing above their historic lows, mortgage rates are still quite low. The economy is heating up, and that is the likely reason for the slight rise, but there is still plenty of incentive for new buyers to obtain mortgages or for some homeowners to refinance their home. For the latter group, however, sooner rather than later would be advantageous to lock in the lowest rate they can during the rise.
