Shocking Mortgage Rates Shoot Higher, Ace Ventura Investigates!

Ace Ventura: Pet Detective Dives into the Mortgage Rates Mystery

Alrighty then! It's time to investigate the case of the skyrocketing mortgage rates! According to a monthly government report on wholesale prices inflation is still lurking around like a sneaky squirrel causing mortgage rates to jump. The average rate on the 30 year fixed mortgage is now a whopping 7.14% the highest it's been in two months. Can Ace Ventura crack this case and save the homebuyers?

Mortgage Rates Go On a Rollercoaster Ride

Just when you thought it was safe to buy a house mortgage rates went up up and away! In October rates hit a peak but then spiraled downwards like a pigskin launched by Dan Marino. However they made a sensational comeback whizzing back over 7% last Friday. Woo hoo talk about wild rate trends!

The Optimism vs. Skepticism Battle

"There are two ways to look at recent rate trends in light of the data driven spikes over the past two weeks," said Matthew Graham the chief operating officer at Mortgage News Daily. Sounds like a riddle doesn't it? On one hand we have the ever optimistic perspective that rates are still almost a percent lower than they were in October. But on the other hand skepticism creeps in. Will rates go even higher? Only time will tell my friends.

Low Rates Saved the Day for the Housing Market

When all hope seemed lost in the housing market low mortgage rates swooped in like Superman to save the day! As a result sales of newly built homes shot up 8% in December. Homebuilders were happier than a walrus on a waterslide seeing their buyer traffic increase. Oh the power of lower interest rates!

Buyer Traffic and Pent Up Demand

Buyer traffic is like a flock of flamingos on the move and even small declines in interest rates can make it soar! NAHB Chairman Alicia Huey believes that more and more prospective buyers will enter the marketplace if mortgage rates continue to decline this year. It's like letting a herd of elephants loose in a peanut factory!

Buyers Beware! Rates May Scare You Away

Hold your horses homebuyers! This new upswing in rates might send you running like a startled gazelle. In January when rates flattened signed contracts on existing homes and new listings weakened. Redfin a national real estate brokerage witnessed the effects firsthand. Don't let the rates ruin your dreams of finding the perfect den!