Mortgage Trend: Interest Rates Are Rising

It’s correct Mortgage interest rates are on their way up after five years of at a standstill. Interest rates are projected to continue increasing to an average of 5.5% for a 30-year mortgage and 4.75% for a 15-year mortgage.

Higher rates do not mean the economy is in trouble. It means the exact opposite! To assist in stabilizing a strong economy and combat rising inflation over the past few years, the Federal Reserve choose to increase short-term interest rates. Naturally, we will see a trickle-down effect to the bank level as with mortgage interest rates.


The rate increase boils down to more people spending and borrowing. Even with this new development expect both buyer and sellers to adjust their spending habits to best match the changes.

Overall, if you plan on selling your house, plan for it to be on the market a bit longer with fewer offers. Mortgage financing is still the most significant commitment and combined with higher interest rates it may cause people to hit the pause button. I partner with experienced and skilled mortgage professionals. Together we can help you to set realistic expectations and share critical insights about the state of the current real estate market.


At the end of the day while mortgage interest rates are the highest they’ve been in a while, they are still historically low. If you are not a cash buyer, it is smart to explore your mortgage options and match with your real estate goals. For some, a 30-year conventional fixed-rate mortgage is more appealing than the 15-year adjustable rate mortgage or your scenario could call for entirely different product altogether. We work with our sister company, Stanford Mortgage, to help you navigate the unique factors and help you choose the best mortgage financing option for you.


One of the unique items we have been doing lately is “Seller Paid” rate buydowns to increase a Buyers purchasing power. If you or a friend are in the market for a new home I would be happy to show you how a rate buydown can help you buy the home of your dreams

©2019 A division of Finance of America Mortgage LLC || NMLS ID #1071 | Mortgage Banker License #0910184 | Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act.
Our product disclaimer:
This is not a commitment to lend. Prices and guidelines are subject to change without notice. Some products may not be available in all states. Subject to review of credit and/or collateral; not all applicants will qualify for
financing. It is important to make an informed decision when selecting and using a loan product; make sure to compare loan types when making a financing decision.

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