KDLT Home KDLT on Facebook KDLT on Twitter Get the KDLT iPhone App Get the KDLT Android App

Mortgage Rates Jump To Highest Level In Years



Bookmark and Share

Major banks are laying off mortgage workers as interest rates hit their highest level in two years.

A spokesman for Wells Fargo says the company has to lay off workers because the demand for refinancing has dropped from earlier this year.

The average rate on the 30-year fixed loan jumped to 4.58 percent. That’s up from 4.40 percent last week. While some rising rates may sound like bad news for someone borrowing money, some experts say there's a positive side to the rates going higher.

Despite the increase in mortgage rates, rates are still low compared to ones in the past.

"This isn't that big of a change, rates are still historically low, it's still a great time to buy," said Augustana College Professor of Economics, Reynold Nesiba.

Doctor Reynold Nesiba, Professor of Economics at Augustana College did the math.
Let's say you want to buy a $150 Thousand house. He compared how much you would have paid last week and how much more you would pay today with the increasing mortgage rate on a 30-year fixed loan.

“That would mean the difference between $767.17 and $751.14. It’s a difference of about $16 a month,” said Nesiba.

It might not affect just mortgage rates, but other interest rates like getting a new car or buying furniture. While rising rates might sound like bad news to the borrower, Nesiba says a reason the rates could be going up is because the economy is getting stronger and is expected to improve.

"Interest rates are going to be higher in the future because we expect income to be higher in the future,” said Nesiba.

Since it's hard to determine what rates could be in the next 6 months to a year, buying a house with the new increase still isn't a bad investment.

"If you're comparing what interest rates are now compared to what they can be in a couple of years from now, it's better to take out that 4.58 percent interest rate now than some higher rate in the near future,” said Nesiba.

Professor Nesiba says he confident interest rates will go up even higher in the future, which affects someone who is thinking about getting a home right now.

Also, if you have an adjustable rate mortgage, these higher rates could affect your payments. Banks can charge different rates to borrowers based on their credit scores, credit history, and work history. Even with the rate changes, lenders say you still want to make sure you have good credit.


< Prev Story Back To Top Next Story >
     

SD DUI Implied Consent Law Ruled Unconstitutional

The South Dakota Supreme Court has ruled that the state's ...

Judge Rules On Evidence In Pierre Teen's Trial

A judge has ruled on what evidence can be presented during the upcoming trial of a ...

Transportation Funding Panel To Meet In Pierre

South Dakota lawmakers will take input next week in Pierre on the state's ...

Restaurant Won't Pass Higher Wage To Workers  Aug. 21

Presentation Gets Shot At Regaining Accreditation  Aug. 21

Federal Jury Convicts Man In Large Drug Bust  Aug. 21

El Riad Shrine To Host Midwest Shrine Association  story with video  Aug. 21

Weiland Calls Rounds 'Senator' In Forum Gaffe  Aug. 20

U.S. Senate Debate Surrounds EB-5 Scandal   story with video  Aug. 20

Iowa Mother Charged After Girl Becomes Pregnant  Aug. 20

SD Gubernatorial Candidates Square Off   story with video  Aug. 20

South Dakota Hunger Report Released  story with video  Aug. 20

Students Issued Chromebooks For Year Ahead  Aug. 20

SD Groups Form Alliance Against Pipeline  Aug. 20

SD Man Sentenced Over Worker Lead Poisoning  Aug. 20

Suspect Tried To Push Woman Into Lake  Aug. 20

South Dakota Students Score Well On ACT Exam  Aug. 20

Neunaber's Father Died Of Natural Causes  Aug. 20

Rapid City Teacher Faces Child Porn Charges  Aug. 20

Uranium Mine Hearings Continue In Rapid City  Aug. 20

KDLT News Archive
     

Iowa Mother Charged After Girl Becomes Pregnant

Authorities say a central Iowa woman faces a child ...

Suspect Tried To Push Woman Into Lake

Sioux Falls Police are looking for a 19-year-old man ...

Neunaber's Father Died Of Natural Causes

(KTIV) The Plymouth County Sheriff released the ...

U.S. Senate Debate Surrounds EB-5 Scandal   story with video  Aug. 20

Rapid City Teacher Faces Child Porn Charges  Aug. 20

South Dakota Hunger Report Released  story with video  Aug. 20

Students Issued Chromebooks For Year Ahead  Aug. 20

Restaurant Won't Pass Higher Wage To Workers  Aug. 21

KDLT News Archive
     

Explorers quick start too much for Birds  story with video

Sioux Falls, SD-- The Sioux Falls Canaries were dogged by timely ...

Scheels Plays of Week from August 11th-17th  story with video

Zach Borg has your Scheels Plays of the Week from August 11th-17th. ...

Bougher pitching well for Railcats  story with video

Former Jackrabbit Stephen Bougher has had a solid second season in the American ...

Birds go extras behind Kirby-Jones HR's  story with video  Aug. 19

MMA Fights finally come to South Dakota  story with video  Aug. 19

Kluwe, Vikings Reach Settlement To Avert Lawsuit  Aug. 19

Softball season is underway  story with video  Aug. 18

Talcott adds amateur title to resume  story with video  Aug. 18

KDLT Sports Stories
     
Back To Top