Rates change their tune about omicron

The tides have turned once again with the 30-year fixed rate mortgage increasing 11 basis points to 3.25% and the 15-year fixed rate mortgage increasing 8 basis points to 2.60%.

current outlook:

Rates moved up with signs that the omicron variant may be more manageable than expected and hints from the National Association for Business Economics that inflation may exceed targets for another two years. The finance industry is also going through its own changes: if you get a loan in 2022 with fluctuating rates such as an ARM (adjustable-rate mortgage), expect it to follow a new index instead of the traditional LIBOR. Meanwhile, existing loans that currently reference the index must find a replacement one by April 2022. The Consumer Financial Protection Bureau set this rule in place after it was discovered that international banks had illegally tampered with the LIBOR.  

Rates change their tune about omicron

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