Mortgage rates decreased 9 bps this past week to 4.05%. While 4.00% is not a major price point, it will start catching the public’s attention. For a $100,000 loan the monthly payment increased by $5 to $480 which is equal to $0.17 a day. Rates were below 3.00% for 14 weeks and it appears these rates are a thing of the past.
Rates rocket up and feather down and for now and into the foreseeable future, they will continue to increase. Robust employment numbers were released on 3.4.22. The 3.10.22 CPI was high mainly driven by higher energy costs. The Federal Reserve has not changed its Fed Funds rates which are short term rates—their next meeting is 3.15.22 Fed Chairman Powell stated in an interview that a 25bp was likely. It appears longer term rates have increased in anticipation of an increase by the Fed. Viewed from a broader time frame, 4.05% mortgage rates are relatively low.