Interest Rates Are Going Up And Down...Hey What's Going On?
I glanced at a few money market yields this past week and they are hovering around 2.6% However the Wall Street Journal is reporting mortgage rates are going up. Apparently the long-term rates are creeping up and your money-market yields are dropping.
If you are thinking about buying a home, it's time to look into locking in your rate.
Now.
Rates have suddenly spiked in the past 10 days and there is a serious danger that this could get a lot worse.
The average interest rate on a typical 30-year fixed loan has jumped to 6.02% from 5.82% in a week, according to data tracked by Bankrate.com. That's because rising inflation fears have caused a jump in the interest rates on long-term government bonds.
On a $300,000 mortgage, the increase will add $38 to your monthly payments. It will cost an extra $4,000 in interest over the total life of the loan.