Mortgage rates have been at historic lows for about six months, but there are a few early signs they could be on the rise.
Last
Wednesday, a lot of would-be borrowers were caught off guard when rates
rose 0.5 percentage points in one day, from about 4.8 percent to 5.3
percent.
“There was a lot of disbelief among borrowers,
saying, ‘Oh my gosh, how did this happen? We thought they were going
down forever,'” said Keith Luedeman, chief executive of
goodmortgage.com in Charlotte.
People have grown accustomed
to rates of 5 percent or even lower, ever since the Federal Reserve
gave mortgage demand a boost by announcing it would buy up certain
mortgage-backed securities. In April, rates for a 30-year, fixed-rate
mortgage hit a record low, of 4.78 percent.
Continue Reading At Charlotte Observer
