Mortgage Rates Hit Highest Level in 4 Years

Mortgage rates inched even higher late last week, hitting a level not seen in four years after the January unemployment report topped economists’ expectations. As of Friday, CNBC reported that the 30-year fixed-rate mortgage rate was at 4.5% on average. Rates at some lenders were even higher than that as expectations increased that the Federal Reserve will raise interest rates multiple times this year. With wages also showing an uptick in January, there was a jump in bond yields, to which mortgage rates are tied.

The continuing rise in mortgage rates, coupled with concerns that home prices are on the increase, has led some to worry that buyers will be shut out of the housing market this spring. Even a small increase in mortgage rates can preclude certain borrowers from getting a mortgage and thus purchasing a home. CNBC noted that home prices at the lower end of the market are seeing the fastest jump. These homes are usually for first-time buyers who are extremely sensitive to changes in mortgage rates. This all comes while mortgage rates are still at historic lows – it’s just that home buyers have gotten used to the low rates.

It is likely mortgage rates will rise in the year ahead, says Len Kiefer, deputy chief economist at Freddie Mac.

“The Federal Reserve did not hike rates this week, but the market views future hikes as a near certainty,” Kiefer says.

“The expectation of future Fed rate hikes and increased borrowing by the U.S. Treasury is putting upward pressure on interest rates. The 30-year fixed rate mortgage is up over a quarter of a percentage point (27 basis points) from the first week of the year. Thirty-year fixed mortgage rates have increased for four consecutive weeks and are now slightly above where they were last year at this time.”

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Psst.I’m a real estate agent.This post was authored by local resident and REALTOR, John Womeldorf. John is known around town as Mr. Williamsburg, for both his extensive knowledge of the Williamsburg/ Richmond/Hampton Roads area and his expertise in the local real estate market.John can help you access all the information you will need about choosing a neighborhood/ buying a home in New Kent, Gloucester, Newport News, Hampton, York County, Smithfield, Williamsburg, Poquoson, Richmond or the greater Hampton Roads area, including area information on schools, local government, shopping, activities for the children and more!

Whether you have made a decision to relocate, retire or are just considering a move to Williamsburg or Hampton Roads VA, let me help make your transition or PCS to the area a smooth and enjoyable one! You can reach me by phone at 757-254-8136 or email John@MrWilliamsburg.com

I look forward to serving your real estate needs!

Best,

About mrwilliamsburg

I love Williamsburg !
Being “Mr. Williamsburg” and starting my web site in 2004 has been a great way for me to help people looking for homes for sale, communities and an “insider knowledge.” of the area.
Turned out I was onto something. Because I offer in-depth information and up-to-the-minute blogging, even international clients have found me. One couple, moving back to the States from France, told me that a post I wrote blog about grocery shopping in Williamsburg convinced them that Williamsburg was the place to be, and that I was the best source by far that they found on the web.
I’m happy to say that I hear similar comments from many of my clients looking for homes throughout Williamsburg and Hampton Roads.
I grew up in Virginia Beach, Va, After attending college, I worked at a number of positions including manager of a land development and construction company and business manager of a cut flower business that we grew in sales from $300,000 to $15 million (we were supplier to Whole Foods and one of the first cut flower suppliers to Costco).
In 2004, it seemed like a good time to simplify my life. I moved my family from Annapolis to Williamsburg. I went into real estate with Liz Moore and Associates, and was one of the initial agents when Liz opened her Williamsburg branch.
My sons Zach and Josh attend Lafayette High School and Hornsby Middle School and are crazy about sports and the outdoors.
I feel lucky to be living the dream, and saving two to four hours by not driving on the DC beltway every day. So, I can now spend my time with family while concentrating on learning — and sharing — information about living in Williamsburg.
In real estate, no two people or transactions are the same. Everything’s a challenge, and I’m rewarded every time in close a transaction and have the opportunity to see the smiles on clients’ faces.
Please email or call me for assistance with any real estate questions about the area
John@MrWilliamsburg.com or 757 254 8136