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Mortgage rates rise to 7-year high, at 5.05 percent

Posted at 5:39 PM, Oct 14, 2018
and last updated 2018-10-15 01:25:19-04

Interest rates for all types of loans increased this week, which led to mortgage rates reaching its highest levels in 7 years. This specific raise refers to the average 30-year fixed home loan.

The Mortgage Bankers Association said this week the average 30-year fixed home loan rate hit 5.05-percent , the highest since 2011.

"For the consumer now, purchasing, still do it. Its still an excellent thing," said Robb Sikes, the branch manager and senior loan officer at Residential Bancorp in Tucson.

The federal reserve said the country is ready for this increase, because the economy is strong.

"Growth is running at a healthy clip. Unemployment is low, the number of people working is rising steadily, and wages are up," said Jerome Powell, Federal Reserve Chairperson.

According to Sikes, he says rates are still relatively low - especially when compared to what homeowners were paying before the great recession.

"You know rates are right back where they were in 2009 and '10. So right now, even at a five, five and a half, six [percent] - excellent. Do it, do it, do it. All day long," said Sikes.

Sikes said if you're thinking about buying a home, don't hesitate.

"Get it now because prices are still going to continue to rise, because inflation will continue to rise," said Sikes.

And because we're in a sellers market, Sikes said to apply for the mortgage loan you need sooner rather than later.