This week started out with rates seeing a little improvement over last week and then Wednesday came!! The bond market reacted to news out from ADP regarding private employment. ADP reported that the private sector added 79,000 new jobs and it also revised numbers for October higher than previously reported.
This caused the bond market to push rates higher and we saw about a .25% jump in rates on Wednesday. Add that to last week's numbers are rates are at or over 4.5% for 30 yr mortgages. It's been several weeks since rates have been over 4.5%.
With numbers showing that the economy may be improving more rapidly than previously thought, we will more than likely see interest rates continue to increase. There may be days where rates drop, but we have probably seen the bottom and are on the way back up. This Friday the big report of the week is the Labor Department's nonfarm payroll numbers. If those numbers are better than expected, look for rates to increase again. If they are worse, we may see some small drop in rates.
If you are looking at buying a home or refinancing – you may want to move soon! For those looking to refinance, rates are definitely higher than they have been and it may not be worthwhile for you to refinance – depending on your current interest rate.
If you are looking at buying, make sure you know what you can qualify for. Many buyers were preapproved when rates were in the 4-4.25% range and an increase to 4.5-4.75% may mean you will not qualify for the same amount. If you have a preapproval, make sure you are in contact with your lender to see if rates affect what you are looking at. If you have written a purchase agreement, you may want to lock now or you may see interest rates go even higher.
Contact your lender and ask about rates, make sure you know where they are at and what you currently can qualify for. Rates can change more than once a day, if you are comparing rates with different lenders, make sure you are doing it at the same time.
