This was one of the top news stories this week in Mortgage News Daily and many other news publications and broadcasts. I find this comical since mortgage interest rates have been at historic lows for several years and are still close to historic lows!
This “terrifying” interest rate rise causing these news headlines is an increase in the average 30 year fixed rate from 3.5% to 3.75%.
Let’s put this into perspective. The difference in the monthly payment for a $100,000 loan between 3.5% and 3.75% is a whopping $14. My guess is that most of us would find $14 if we vacuumed under all our car seats and sofas. (more…)