The Federal Reserve raised short-term interests this month.
Freddie Mac reported that the average commitment rate for a 30-year, conventional, fixed rate mortgage stayed below 4 percent, but rose from 3.80 percent to 3.94 percent in November.
Mortgage rates are expected to rise to 4.50 percent by the end of 2016, but this rate is still historically low; a full percentage point below the rate during the recession of 2008.
The low fixed mortgage rate should help spurn demand and encourage first-time home buyers to enter the market. But while the rate is at its current level, potential home buyers should keep an eye out for rate increases so that they’re not caught by surprise when the spring buying season comes around.