St Casimirs Mortgage Minute

Mortgage Rates Rise But Still a Bargain

Mortgage rates have topped 4 percent for the first time in about a year, hitting 4.15 percent in the first week of June, reports the Mortgage Bankers Association. The rise represents a 15 percent increase in the cost of borrowing, or about $50 in the average monthly payment on a $192,800 loan -- last month's median price for existing homes. There is concern that rising rates could slow the pace of price and sales gains, but rates would have to move substantially higher to derail the housing recovery. "Rates aren't moving far enough where somebody says, 'I can't get the house I thought I was going to be able to get,'" says Peter Lansing, CEO of Denver-based Universal Lending. Buyers are more concerned about the low supply of homes for sale, which is pushing prices out of their range.

From "Mortgage Rates Rise But Still a Bargain"
Wall Street Journal (06/19/13) P. A4 Timiraos, Nick; Dougherty, Conor