The people of the Unites States have long been enjoying relatively low interest rates. However, with the nation still gradually recovering from the economical downturn, consumers will face the financial problem of higher interest rates.
Economists are expecting interest rates to grow since the nation aims to surmount its increasing debt as well as prevent rising trends.
“Americans have assumed the roller coaster goes one way,” said Bill Gross, the co-founder of the investment firm PIMCO. “It’s been a great thrill as rates descended, but now we face an extended climb,” Gross added.
For 30-year house loans, for instance, the interest rate has gone up from 5 to more than 5.2%. As for fixed mortgage, the average rate rose from 5.08 to 5.21%, said the mortgage company Freddie Mac.
According to economists, the average rate of 30-year home loans may also reach up to 6%, which was the level that was last observed in November 2008.
In addition, the interest rate of a 15-year fixed rate mortgage has also increased from 4.39 to 4.52% last week.
The impact of the interest rate hike will be felt by the housing industry the most. What with all these statistics, mortgage rates are not likely to go any lower than their present levels.