Have the rates gone up that much...

[Chinmay J.]

So wanted to ask the community what's the current mortgage rates for 30 yr fixed, conventional, investment loan w/ 25% down  In July, I bought a duplex and got 30 yr Fixed for 4.875%  I was just quoted 5.5%. Same exact criteria. No change.  Both loans are around $75,000

I have always had a stellar credit score 800+. 

Does that sound about right?

[Spencer Gray]

The 10 year treasury just hit 2.86%, compared to around 2.36% in July of 2017 and the yearly low of 2% in September 2017. With a healthy jobs report and reports of inflation steadily picking up, specifically wage inflation, the Fed will start worrying about the economy overheating and is expected to continue their process of normalization by liquidating their balance sheet and moving towards "normal" rates. Most expect the Fed to raise the federal funds rate 3-4x this year. That way when we do enter a recession the Fed will have greater ability to stimulate the economy by lowering rates back down...

Side note - Everyone expected rates to raise last year also and they actually fell a bit, so who really knows? I'll be looking for strong cashflow that will weather just about any storm/rate environment.