Rates have been rising

Rates have been rising over the past few weeks and although they are still at very low levels (the mid to high 4 percent range) they have jumped ½ a percent.  This is the most significant consistent increase since the lows that we experienced in October.
Why has there been an increase you ask? Well, rates typically move on stronger economic news which we have had in the form of some resolution of the European debt issues as well as stronger indications in the US economy. Keith Gumbinger, Vice President of HSH Associates, state in a recent article on Marketwatch.com that,

“General improvement in the economy over the last couple of weeks has also had an influence on the rise in rates.”

What does this mean for you?
Purchasing power decreases as rates increase. If you are considering purchasing a home, keep in mind that there is a direct connection between interest rates and your price range for purchasing a home.
With the rates increasing, now may be a good time to review your options and lock in your interest rate if you still have not considered refinancing. While experts are not predicting a large increase in rates, they also are not predicting a return to the lows we experienced in October.