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.


63° 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







Sponsored

 


View business

You may also like

Wild Bat Found At Great Plains Zoo Tests Positive For Rabies

6/26/2015 11:19 AM

The Great Plains Zoo is warning visitors after a bat found on a sidewalk there tested positive for rabies.

Full Story
Presidential Proposal Would Expand Overtime Pay

6/30/2015 7:08 AM

Obama is unveiling a proposal to require overtime pay for workers who earn up to $970 per week, up from the current $455 threshold.

Full Story
Moe's Southwest Grill Selects Sioux Falls Location

6/29/2015 12:41 PM

You will soon have a new option for chips and salsa, salads and tacos in Sioux Falls.

Full Story
Speed Limit Dropping To 75 MPH Along Stretch Of I-90

6/26/2015 1:53 PM

Starting next week, drivers on Interstate 90 will have to slow down from the Wyoming border to just west of Exit 55 in Rapid City.

Full Story
$8 Million Renovation Planned For DM&E Downtown Building

6/25/2015 10:37 AM

An old railroad office building at 140 N. Phillips that has sat vacant for the last few years in downtown Sioux Falls is getting a new lease...

Full Story


Events