Rise in Mortgage Rates Continue

[Emily Smith]

Hi,

The average rate for 30-year FRM increased by 3 basis points to close at 6.38% whereas the rates for 5/1 ARM slid down by a single point to close at 6.19%.
When mortgage rates were favorable and lending terms not so stringent buying homes still remained out of reach for many because of steep prices. But as property prices have remained more or less stable since last year in relation to increase in income, affordability can improve with better financing options.
Mortgage rates, on the other hand, have been steadily rising over the past weeks with no signs of the trend being reversed. If the rates continue to rise, it can slow down demand for refinancing which has so far been nearly 50% of all mortgage applications.

Cheers
Rob Thomos
:welcome: