In case you haven’t been watching the market, this week mortgage interest rates spiked higher. All lenders have been raising rates, not only in the morning, but two or three times throughout the day.
If you were quoted 4.5% and now are being quoted 5.125%, your loan officer is not lying or pulling a fast one. That is what the market has done this week. (Your interest rate will depend on your credit score and down payment as well as the type of loan. This is just one example.)
Interest rates remained low for longer than any of the experts predicted after the great recession. Now, with the robust economy and the record low for unemployment, the Federal Reserve Board is raising short term rates to protect the economy from inflation and recession. Mortgage rates are following suit.
The silver lining is that higher interest rates are good for your savings and investments.
You must speak with your loan officer about locking in your interest rate. Rates have been moving upward all year, and the prediction is for another increase in December.
The trend is not your friend! I hope we might see a settling down a bit next week, but I do not know if that will happen or not. If it does jag downward, my recommendation is to lock fast, because it might not last the entire day.