Finance On Wheels

Wells Fargo Mortgage Rates Have Went for Quite a Ride

Wells Fargo Mortgage Rates have seen quite a roller coaster ride over the last three weeks. In mid May mortgage rates were near a historic low hovering around 4.8%. Now, just three short weeks later, rate are all the way back up to 5.29% and look to be headed higher. No one knows where rates will end up but it sure seems that with 10 year treasury yields uptrending that they are going higher. With current yield rates, history shows that mortgage rates should be at least 5.6%.

If mortgage rates continue higher will this hurt the housing market in the United States? It is very possible that it will greatly hurt the overall market because many potential home owners are not going to be interested in getting a mortgage that is over 5.5%. Many young adults have gotten used to hearing mortgage rates under 5% and they have no interest in having a rate higher than this. Little do they realize that this is one of the lowest mortgage rate periods in the history of the United States.

Posted in Mortgage |