Interest Rates are Trending up: March 8th Market Update


Over the past week, Interest rates have risen by roughly .125%. I always find it funny when I type that out. It seems like such a small and insignificant number, doesn’t it? But if I say that rates have gone from 4.25% to 4.375%, I hear this response…’WHOA’, rates are really rising!

Here’s the brass tacks: Will Interest rates keep rising to 5% or higher this year? Probably not, but I wouldn’t discount the idea of home buyers wrestling with the idea of paying 4.75% or even 4.875% for a home come fall.

Basically what we are seeing right now is a renewed optimism in economic growth. That fuels the stock market and simmers the bond and security market. When bonds and securities lose investment money, long term interest rates rise and that is what we are seeing play out. This has and will always be very emotionally based. If we see a country’s economy collapse (Greece, I’m looking at you!) or the fear of war (Hi North Korea, How many missiles did you fire today?). We could see a reversal quickly.

We could also see a slower rise if the Federal Reserve starts raising the key interest rate more aggressively this year.  YES, that could actually lead to mortgage rates remaining lower because of its potential effect on stock investing.

The bottom line: Purchasing Power for Home buyers is currently the strongest I would expect to see in 2017 and with the demand for homes, this is an idyllic time to sell.

Have a great week!


Rates: 30 year fixed at 4.375% (APR 4.488) and the 15 year at 3.75% (APR 3.85), FHA: 3.75% (APR 5.141): As always rates change with individual credit scenarios and programs, APRs are estimated based off of a $250,000 purchase price with 20% down and a 740 credit score, if you want an exact quote, call or fill out an application at These are not quotes, merely a baseline measure to gauge how rates change from week to week.

Matt Royer
Mortgage Consultant, CMC NMLS 366970

Homes Mortgage NMLS 298853

612-232-7646 cell I 651-770-0637 office I Apply Now!



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