Jan 01, 2017

December 2016 Mortgage Interest Rates

- originally posted December 1, 2016 -

Mortgage interest rates rose mid-November following the election.

Rates continued to climb through last week, as stocks rallied on speculation of an expanding economy in the new Trump administration. There is speculation that the new economy will bring with it higher inflation and higher amounts of U.S. government debt.

What home buyers need to know now is:

1) There will likely be some stiff competition for homes and condos heading into December,
as buyers scramble to secure a property and head off further rate increases.

2) The difference in monthly payments on a $200,000 mortgage loan at 3.75%, compared to 4%, is just $29 per month. Although rates are higher, the increase isn't necessarily a cause for panic!

There could be a pullback in rates but there is no way to know for sure. And it could take time for all this to play out.

My best advice is for home buyers to lock their rates, and not to take any chances.

Till next month,

Michael Dagner

Michael Dagner is a real estate professional in Denver, Colorado.