There has generally been one common theme with long-term interest rates this year: they have been on the rise. However, rates increasing from historic lows doesn't seem to be having much of an effect on home buyer demand.
On Thursday, Freddie Mac reported 4.55 percent with an average 0.5 point as the average for a 30-year mortgage, down three basis points from last week, but up notably from 4.02 percent a year ago.
However, Freddie Mac's newly annointed chief economist Sam Khater points out that higher rates haven't dampened home buyer demand.
“While mortgage rates have increased by one-half of a percentage point so far this year, it has not impacted home purchase demand, which continues to grow this spring,” Sam Khater, Freddie Mac chief economist, said in a statement. “Our data through April show that first-timers represent 46 percent of purchase loans, up from 43 percent over the same period a year ago.”
The UrbanTurf Mortgage Rate Disclaimer: The rates reported by Freddie Mac for 30-year mortgages are usually the best rates that the most qualified borrowers can get, so borrowers or those considering refinancing should not necessarily read this news and think that they can go out and get a loan with the quoted interest rate.
This article originally published at https://dc.urbanturf.com/articles/blog/rising-interest-rates-arent-dampening-home-buyer-demand/13930.
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