Mortgage Rate Increases and their Impact on Relocation
Posted by: Meighan Dutt, Account Executive, Cartus Home Loans
Mortgage interest rates have been on the uptick over the past three to four weeks. This has been very frustrating and stressful to those in the midst of buying or selling a home. But, we have some good news.
The long-anticipated increase to short-term rates by the Federal Reserve did indeed happen, as predicted, on March 15th (beware the ides of March!). So, what did long-term mortgage interest rates do as a result? Well…they went down! Historically, this has been exactly what often happens when the Fed moves interest rates. The markets start reacting to the rumors for weeks before the actual event. When the anticipated move occurs, the markets correct a bit. Additionally, this time it appears the markets might have accounted for future rate hikes coming sooner than it appears they will actually arrive.
What does this mean for relocating employees purchasing a home?
Rates have settled back to the 4.25% range as of today. This is very good news for our relocating borrowers for many reasons. It will keep viable buyers in the market for their departure homes, as well as minimize concern on what their rate will be for their new home purchase. Purchasing by first-time home buyers has been very strong in the last 12 months. This bodes very well for real estate markets, and the rates stabilizing should help ensure that this continues.