A recent report from Capital Economics suggests that the increased rate of interest could be putting off potential property purchasers in the US. Whilst this week has seen the interest rate fall slightly it has been steadily increasing over the past few weeks, which may have negatively impacted property sales. As buyers err on the side of caution, even slight fluctuations can cause ripples.
These figures showed the rate this week falling from 4.82 percent to 4.78 percent on a thirty year fixed mortgage, but compared to the low of 4.17 percent in November, rates have actually skyrocketed comparatively. Analysts now believe that rates actually bottomed out at then, and what we can expect is a continual climb from this point forward.
Compared with August’s 6.48 percent rate for the same mortgages, but experts fear the record low rates that have spurred a bit of upswing may be over for good. Even with rates this low, it has been a difficult task to get consumers to budge toward purchasing. Of course this may not be a stickly market controlled variably, many millions of people cannot afford to buy anything. Mortgage applications have been on a slight upswing even still, even as most Americans are busy paying down their debt where they can.