Jung Lim plans to offset the cost of rising mortgage rates by using an adjustable-rate loan to buy a home for his expanding family. For the California endodontist, the money he’ll save makes up for the ARM’s risky reputation.
Raj Date helped write new rules for U.S. mortgage underwriting as deputy director of the Consumer Financial Protection Bureau. Now he’s building a company that will offer loans to borrowers blocked by the agency’s standards.
Ben Bernanke and the Federal Reserve have pretty much signaled last call at the Bar of Insanely Low Mortgage Rates. With the Fed now on record that it may begin to reduce its bond-purchasing program by the end of this year -- suggesting the beginning of the end of repressed rate -- the interest rate on a 30-year fixed-rate mortgage hit 4.25 percent on June 20. As recently as early May that same rate was at 3.5 percent.
Rob Braunstein said his search for a three-bedroom home on a quiet street in Needham, Massachusetts, is taking on more urgency as he watches mortgage rates tick higher. Every increase, he worries, shrinks his budget by boosting monthly payments, he said.