December's consumer spending was up over a number of categories. While improved consumer spending is good for the economy, it has a negative affect upon mortage interest rates. The reason for this is that good economic news typically causes the stock market to improve. Many investors then pull their money out of safe and secure investments, such as mortgage bonds, and put their money into more volatile investments, like stocks, where they may have a chance of seeing a higher rate of return.

The month of December saw interest rates on 30 year fixed mortages rise from an average of 4.46% to 4.86%. Although this increase may not sound like much, a 0.5% increase in interest rate on a $300,000 loan will increase your monthly payment by $90 a month! Interest rates are still at historical lows, but they have been trending upwards as of late.

Call us today at 425-413-6428 to make sure you get the best interest rate possible before they go any higher.