US Mortgage Rates rise will impact real estate sector

US Mortgage Rates rise will impact real estate sector

Owing to improved investments in the property segment, the mortgage rates in the US have reported an upsurge since past 12 weeks. The overall rates remained below 4%, though, analysts said that the average rates show an increase.

According to estimates of mortgage firm, Freddie Mac, the average rate on a 30-year fixed-rate mortgage has recorded rise upto 3.82% , increasing from 3.76% , a week earlier. The rate on 15-year fixed-rate mortgages, meanwhile, saw a rise from 2.99% to 3.03% this week.

For this estimation, the company has been carrying out weekly surveys of the lenders across the nation. The average rates calculated by Mac are exclusive of extra fees, which most borrowers are supposed to pay for availing lowest rates.

“If you've been wondering whether it's a good time to lock a mortgage rate or execute on that refi, the answer is yes. Mortgage rates may drop through the end of 2015,” said analysts.

Home buyers have an edge on purchases in the remaining part of the year, and market spruces said that such favorable mortgage rates are hardly expected in future.

The lower mortgage rates have in turn increased the purchasing power to 6% annually. The prospects for refinancing houses are also high. Over 6 million households can conveniently opt for refinancing this year, market sources said.

The Freddie Mac weekly survey covered as many as 125 banks nationwide.