Mortgage rates rise for two weeks straight in May

Mortgage rates rose for a second straight week last week but they still remain well below four percent on average.

According to Bankrate’s weekly national survey, the benchmark 30-year fixed mortgage rate stood at 3.82 percent going into the Memorial Day weekend, up from 3.76 percent the week before. The 15-year fixed rate rose from 2.98 to 3.06 percent, while the 5/1 adjustable-rate mortgage rose to 3.23 percent last week, from 3.18 percent the previous week.

Rates are rising because market participants are reacting to the Federal Reserve, which is making noise about a summer interest rate hike. Mortgage rates are rising along with long-term rates generally, but only by a modest amount.

Investors weigh the Federal Government’s position against a backdrop of the sluggish global economy, which acts as a moderating force on rates. What should be of interest to homebuyers is that the 30-year fixed is still well below 4 percent. Any move on rates is likely to take effect slowly.

If now is the time to jump into the housing market, Travis Credit Union can help. Our knowledgeable mortgage loan consultants can discuss the right home loan option for your financial situation. Visit our Real Estate Loans section for more information.

Real Estate Loans