According to latest updates, mortgage rates have changed in many fields across the states. The increase in long-term mortgage rates have been noticed since the election on November 9th and stronger economic growth could push them even higher.
In comparison to the past year, the situation got more challenging. The rate on 30-year fixed rate loans climbed from 4.09% to an average 4.19% in a week. This is an excessively sharp increase since average rate from 2016 stood at 3.65%.
When it comes to 15-year mortgage, the situation is almost the same. The average rate increased in just one week in January from 3.34% to 3.40%.
Investors in Treasury bonds believe that new plans for tax cuts and higher spending on traffic infrastructure designed by the new president will drive up economic growth and inflation. For that reason, they bid yield rates higher.
As a result, prices of long-term Treasury bonds will be depressed since their value over time will wear off by inflation.
Contrary to prices, bond yields moved opposite and influence long-term mortgage rates. The yield on the 10-year Treasury note climbed by 0.10% before 26th January. It held steady at 2.52% since then.
This Thursday, February 6th, Arizona mortgage rates are 2 basis points higher than the national average rate of 3.96%. The 30-year fixed mortgage rate experienced slow decrease by 0.01% and amount for 3.98%. While 20-year fixed mortgage rate climbed to 3.75%, the most popular, 15-year fixed mortgage rate dropped to 3.15%.
Did you know how dynamically mortgage rates can change from day to day, and even from state to state? Ask Mortgage Masters of NOVA® Home Loans from Phoenix, and get informed about best mortgage rates and loans you are interested in.