Mortgage rates are still pretty low, but in the past couple of weeks, they’ve jumped a significant amount. If you’re shopping for a home, now may be the time to lock in a low rate, but don’t let that pressure you into buying.


According to CNN, rates have increased to 3.94% from 3.57% following the election. Using their own analysis, Bankrate has that number a little higher at 4.01 percent. They say a year ago, the rate was at 4.09, and typically, rates don’t jump this quickly. Many professionals recommend locking in a rate as soon as possible, but keep mind, most of these people are mortgage lenders, brokers, or other folks who represent the lending industry. That’s not to say they’re wrong. Rates are historically low no matter what, so chances are, locking in now won’t hurt.

However, if you’re not ready to buy a house, you also don’t want to let this pressure you into making a decision you’re unsure about. Realtor.com reported:

Although rates may continue to rise, they’re not expected to keep shooting up. “We are expecting rates to go up next year,” says realtor.com®’s chief economist, Jonathan Smoke. But he adds, “I doubt we will see much additional movement before the end of the year.”


And Zillow’s Vice President, Erin Lantz, told the Chicago Tribune:

“Consumers considering buying or refinancing now should stay patient, as we’ll likely see rates stabilize once markets find a new equilibrium.”

Even if we do see movement, buying a house is a big decision. A nice low rate is enticing, but you want to make sure you to give yourself enough time to consider the many additional financial factors.

If you come across advice urging you to lock in a low rate, consider the source, take your time, and don’t feel pressured to lock in a purchase you’re not ready to make.


Photo by Binyamin Mellish