The Fed held its June meeting yesterday and afterwards Chairman Bernanke confirmed the rumors that had been swirling around for weeks — the Fed is planning to take its foot off the gas later this year when it comes to compressing mortgage interest rates. The markets predictably reacted quickly and as a result mortgage interest rates have moved higher. It appears that the days of 30 year fixed mortgage rates breaking all time lows may be gone for good, barring a reversal from the Fed of some kind.
The good news is that rates on 30 year fixed mortgages are not too far from all time lows still. But there is a growing consensus among pundits that the trend is moving higher and that we could see those 30 year fixed rates rates back up in the 5′s by the end of this year. If you are interested in refinancing or purchasing a home contact us in the sidebar right away.