User uShare Login | Register
Login
Register

Along with posting photos, videos, and stories, your uShare account lets you post Classified Ads, recipes on What's For Dinner, and Announcements.


61° View Weather Current Conditions Sioux Falls Change Location
Set Weather Options

RADAR LOCATION

TEMPERATURE LOCATION

Share your Photos, Videos, and Stories on uShare! Click here to get started.

News

[0] My Saved Articles
Back to all news

Business

Find local businesses
on the KELO Pages!

 

Mortgage Rates Rise

March 22, 2012, 9:50 PM by Angela Kennecke

Mortgage Rates Rise
SIOUX FALLS, SD -

Mortgage rates sat at 30 year lows, under four percent, for months.  But in the last week, they've bumped up to more than four percent on a 30-year-fixed home loan.

What does it mean for the housing market?  One mortgage banker says the hike may actually spur sales.

While it seemed like they may stay low forever, mortgage rates jumped up above four percent thanks to a recent rise in Treasury yields. 

"It's a good thing what caused it quite honestly.  The stock market moved. That's great! The stock market made a significant jump last week and that affected bonds and anytime that happens, you're going to see mortgage rates creep up a little bit," Mortgage Banker Brian Spaans said.

But that also caused mortgage applications to drop nationally in one week by a little more than seven percent.

"That's very normal and back to rates we saw over the last six months; really not a lot of movement so people get used to that rate and it's kind of old news," Spaans said.

But the recent jump from about 3.8 percent on a 30-year fixed mortgage to 4.1 percent does get people's attention.  And Spaans says it may be just enough to push people to act now.

"Those people that were looking at refinancing, this is an attention getter that they should sit up and pay attention. If they were on the fence and were going to wait and do something later, now's maybe the time to look into that," Spaans said.

A jump in rates can also help spur new home sales because people want to lock in the rate before it goes even higher.  But Spaans says it really has to be a bigger rate hike before it starts affecting how much home people can buy.

"It does take quite a swing. I would say one-plus percent before you're going to notice anything significant on your monthly payment," Spaans said.

Most analysts don't think mortgage rates will go much higher.  They point to a national drop in home resales and more unemployment claims that will keep bond and mortgage rates low.  Just today there were economic indicators that rates could go back down again.

Previous Story

Next Story


Comments







 
Find Local Businesses on KELO Pages!

View business

You may also like

Valentino's Restaurant For Sale

10/20/2014 12:18 PM

Prime real estate on 41st Street in Sioux Falls is for sale. Valentino's Restaurant at 41st Street and Western Avenue has been listed for $1.35 mi...

Full Story
Long John Silver's Closes, Building For Sale

10/20/2014 12:31 PM

A longtime fast food option in Sioux Falls, the Long John Silver's restaurant is closing after more than 30 years in business. 

Full Story
Pierre Woman Wins On In-Flight Game Show

10/17/2014 12:10 PM

A South Dakotan is a winner on the Allegiant Airlines' first in-flight game show called "The Game Plane."  The reality show is film...

Full Story
SD Gas Prices Jump While Nation Approaches Four-Year Low

10/21/2014 11:00 AM

Gas prices have fallen to a nearly four-year low nationwide at an average of $3.09 a gallon.  AAA South Dakota says U.S. gas prices could drop to...

Full Story
Pop-Up Holiday Shop Coming to Downtown Sioux Falls

10/15/2014 11:45 AM

Unglued: Christmas Market, will open in the space formerly occupied by the Book Shop in the Carpenter Building on Phillips Avenue from Nov. 20 through...

Full Story


Events