In his current newsletter, our Century 21 Gemini Mortgage guru, Freddie Torres, has weighed in on the latest jump in rates:
"Up, up, and away – and we're not talking about balloons. We're talking about interest rates, mortgage rates in particular. Indeed, rates soared across both duration and type last week, with the 30-year fixed-rate mortgage adding 21 basis points to average 6.74% (the highest it’s been since last July)"
Yet there's still reason for some optimism...." In fact, many economists believe that a positive curve indicates that investors expect strong future economic growth. The key is for rates not to rise too far, too fast, and for short-term rates (if not the general level of rates) to ease.
Speaking of rate easing, the odds favor a pullback in mortgage rates after the recent rise, particularly in light of Friday's favorable CPI report."