Rates are edging up again!
Rates have been up lately comparatively speaking. Sometime close to the end of January rates jumped up about a quarter point or possibly a half point depending on your credit. This is the highest rates have been in the last three years and have stayed above that level for the last month. This has caused rates that we saw in the medium to high threes over the last year to disappear again. This will be the 3rd or 4th time that rates have gotten this high since the great recession. Will we never see those rates again???? Or will this be similar to the last few times when rates have bumped up this high????
The last few times rates have gotten this high it was on similar good news in the greater economy. But those sparks of economic gain eventually fizzled out. This time though we have seen significant job gains for such a long time that the job market finally seems to be tightening again. That along with a small push in wage increases each month as well along with all the same factors we have seen in other times throughout the last decade will possibly be the deciding factor for the FED. Does this mean that will will actually see higher inflation? Which is why the FED increase rates in the first place, or will the numbers fizzle out and be like the others and we will see rates dip back down again into the threes????
The FED is already on schedule to do three rate increases this year. This increase in the job market and wages may mean a 4th rate increase could be in the cards and that is what has caused the mortgage rates to edge up as well.
Will we actually see this 4th rate increase? Only time will tell. But at least for now rates have increased just in case to cover just in case that does in fact turn into the case.