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.


30° View Weather Current Conditions Sioux Falls Change Location
Set Weather Options

RADAR LOCATION

TEMPERATURE LOCATION

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







Sponsored
Find Local Businesses on KELO Pages!

View business

You may also like

National Attention For Sioux Falls Bakery

12/15/2014 9:56 AM

A Sioux Falls bakery is getting more national recognition.  CH Patisserie has been named one of the top 75 bakeries in the nation by The Daily Me...

Full Story
Cliff Hangers Gallery Closes; Customers Want Items Back

12/15/2014 10:10 PM

For more than two decades, Cliff Hangers Gallery has been a fixture in Sioux Falls.  A couple of years ago, the business moved from Park Ridge Ga...

Full Story | Watch
What Will Cost More/Less In 2015

12/16/2014 1:36 PM

Industry experts say gasoline prices will continue to fall in 2015, but other prices are expected to rise.

Full Story
Denny Sanford To Donate $25 Million For Scholarship Program

12/16/2014 4:30 PM

Philanthropist T. Denny Sanford is donating $25 million to South Dakota for a scholarship program for the state's technical schools.&nbs...

Full Story
Denny Sanford's Multi-Million Solution To Worker Shortage

12/16/2014 10:04 PM

Sanford's money provides half of the funds for a $50 million scholarship program at the state's technical schools to train workers to fill job...

Full Story | Watch


Events