Homeowners with Wells Fargo that are looking to refinance or homebuyers looking to get a home may notice an increase in interest rates that has occurred recently. Rates have been very low as of late, with many homeowners getting a rate around 4.75%, but rates are currently around 5% or higher.
This increase in mortgage rates was expected as the Federal Reserve stopped buying mortgage-backed securities and many feel the housing market is in a strong enough position to handle higher interest rates.
Many homeowners have been refinancing to get a lower rate and lower mortgage payments as well. While rates around 5% are still low and affordable for homeowners, there are many who feel mortgage rates are going to continue to rise through the summer.
With the homebuyer tax credit coming to an end, low home prices available and mortgage rates still quite low, there are more and more homebuyers that are looking into getting a home loan.
While currently owning a home is very affordable, if you are looking into buying a home or even just refinancing because of the low interest rates available, be sure you are on good enough financial ground to do so.