Mortgage interest rates, as reported by Freddie Mac, have
increased by close to a quarter of a percent over the last several
weeks. Freddie Mac, Fannie
Mae, the Mortgage
Bankers Association, and the National Association of Realtors are
all calling for mortgage rates to rise another quarter of a percent by next
In addition to the predictions from the four major reporting agencies
mentioned above, the Federal
Open Market Committee recently voted “unanimously to approve a 1/4
percentage point increase in the primary credit rate to 2.75 percent.”
Historically, an increase in the primary credit rate has translated to an
overall jump in mortgage interest rates as well.
This has caused some purchasers to lament the fact that they may no longer
be able to get a rate below 4%. However, we must realize that current rates
are still at historic lows.
Here is a chart showing the average mortgage interest rate over the last
Though you may have missed the lowest mortgage rate ever offered, you can
still get a better interest rate than your older brother or sister did ten
years ago, a lower rate than your parents did twenty years ago, and a better
rate than your grandparents did forty years ago.