With the Fed raising interest rates, mortgage rates are following suit. Mortgage rates have been moving up slowly since last summer, and the pace of increases has picked up since the election.
Small rate changes matter. For example, if you were planning to get a $250,000 loan and mortgage rates move up between .75 and 1 percentage point, you would need to scale back your purchase by $20,000 to keep the same monthly payment.
It’s always hard to predict the future, but this is a good time to lock in at a rate that is still historically low.