Janet Yellen, the chairman of the Federal Reserve, the body that determines interest rates in the United States, gave a speech today in which she indicated that the Federal Reserve is likely to raise interest rates later this year. Although there are other factors involved, an increase in interest rates by the Federal Reserve typically results in an increase in mortgage rates. Yellen’s comments did not come as a surprise as the Federal Reserve has been pointing to an increase in rates some time in 2015 but her comments reinforce the idea that mortgage borrowers should expect a rate increase within the next six months.
Although they remain low on a historical basis, mortgage rates have inched up by approximately .25% over the past month. With a probably rate hike by the Federal Reserve in the not-so-distant future, now is a good time to start the home buying or refinance process. Use our Mortgage Qualification Calculator to determine what size mortgage you qualify for and our Refinance Calculator to determine how much money you can save by refinancing. Additionally, use the INTEREST RATES function on FREEandCLEAR to keep track of mortgage rates for lenders in your area.
The FREEandCLEAR Mortgage Expert