Mortgage rates are still near record lows but they have been inching up slightly in recent weeks as the U.S. economy shows some signs of improving. The 30-year fixed-rate mortgage—the most popular choice among home buyers—reached its highest level in more than six months last week, averaging 3.63 percent, according to Freddie Mac.
Mortgage rates are projected to rise higher this year, which could make buying a home more expensive. But some housing analysts say that the higher rates could actually help aid the housing recovery.
Home buyers who have been lingering on the market may finally move forward on a purchase. The increasing rates may drive home the point that while borrowing is still cheap, they’d better lock in a rate now before rates move any higher.
More at source: “Why higher mortgage rates will help the housing market,” Fortune (March 18, 2013)