Interest rates are on the rise from a low two weeks ago of 4.75%. We are now seeing daily rates from 5.12% to 5.25% with occasional spikes to 5.5%. This is bad news for applicants hoping to lock in at 5% or lower. There are several factors that may affect the current rise in rates. The biggest factor is the economy is improving so investors are starting to put their money into the stock market again and less into the bond markets which affect interest rates.

No one knows where rates are headed and we move into the summer months. But don’t let a .05% rate change determine if you should buy a home. Home prices are still at record lows, and interest rates at 6% would still be considered a great rate. Contact us today and get locked into the low fives while rates are still low.

www.va-loans.com

This entry was posted on Tuesday, June 2nd, 2009 at 3:54 pm and is filed under Main. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.