Mortgage rates on the rise
As expected by many due to the Fed's completion of their purchase of mortgage backed securities on March 31, mortgage rates have started to rise. But it isn't just that which is causing rates to rise, the 10 Year US Treasury has been going up recently due to apparent strength in the economy and while not a perfect indicator, 10 Year Treasuries and mortgage rates have always closely paralleled.
If you are thinking about buying a home in Charleston, the sooner you act, the lower your mortgage rate will likely be this year. Low mortgage rates improve affordability and that means that you can buy more home for less money when rates are lower.
Many experts are calling for a 6 percent mortgage rate by the end of the year and the current rate is quoted at 5.375 percent, up from 5 percent one week ago. (Rates do tend to go up faster than they go down and rates have also always risen in the spring.)
But for some long term perspective, here are 10 Year US Treasury charts for both 3 months and 3 years which clearly shows the upward trend and a chart of long term mortgage rates. But even with rates between 5 and 6 percent, that is certainly better than the very high mortgage rates of the late Seventies and early to mid Eighties.
