As many of you have probably seen, the Federal Reserve has made the decision to hike interest rates higher. Specifically, around .25% higher. This was not unexpected, and was done so that it may stimulate the economy. While there is a good amount of debate and fear over the mortgage rates hike, it is not the end of the world, or even much of an increase compared to past interest rates.
At a cursory glance, the current mortgage rates, and those of recent memory, have been lower than ever. Many are worried that the current rates hike has brought the average 30 year loan up to 4.17% (4.223% APR). A month ago it was at a 3.51% (3.64% APR), showing quite a leap. But looking through history, it seems these are still quite manageable. According to the attached graph, from the 1980’s to 2012, the percentage rate has been decreasing over time, with little upward spikes throughout.

At an average of 13.40% in 1983 to today’s mortgage rates of 4.17% (4.223% APR), one can count themselves lucky that they are still low. This may even be one of the spikes seen in the graph, meaning that rates could return to the historically low amounts soon enough. Due to the slight turmoil in the market due to the election, and the Federal Reserve discussing rate increases for a good chunk of the year, these are not a nasty surprise.The mortgage world and rates can seem like a scary and confusing place. We here at Vermont Mortgage Co. have the skills and expertise to help you understand any questions you may have, and hopefully guide you through any concerns that may arise. Please feel free to contact us at 802-863-2020, or visit us at our website:

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