Mortgage Rates Continue To Rise But For How Long?

For the 3rd week in a row mortgage rates increased.

As the economy shows signs of growth the bond yields become less attractive to investors and as the bond yields have risen the mortgage rates have followed.

Just last week mortgage rates hit a 3 month high and the mortgage rates continued on the upward trend.

December 2, 2010 30-Yr FRM 15-Yr FRM 5/1-Yr ARM 1-Yr ARM
Average Rates 4.46 % 3.81 % 3.49 % 3.25 %
Fees & Points 0.8 0.7 0.6 0.6

Last week rates were as follows:

  • 30 Year – 4.4%
  • 15 year – 3.77%
  • 5/1 – 3.45%

Does this mean Mortgage Rates will continue to move up?

As long as these trends continue the rates will continue to rise.  As the economy gets stronger there is no where for the rates to go but up.

Experts have been predicting the floor of the mortgage rates for quite some time and we could have finally seen it pass.

Check back often as we update the rates and mortgage information.

3 Month High for Average Mortgage Rates – Nov 28th

The national average mortgage rates have increased to a 3 month high.

The 30 year fixed rate average has not been above 4.40% since August 19th, and the 15 year hasn’t seen this high of rates since mid September.

Here is a look at where the rates are as of this past Friday.

November 24, 2010 30-Yr FRM 15-Yr FRM 5/1-Yr ARM 1-Yr ARM
Average Rates 4.40 % 3.77 % 3.45 % 3.23 %
Fees & Points 0.8 0.7 0.6 0.6

Last week the 30 Year Rate was at 4.39% but the week before that it was at its lowest point ever, 4.17%.

Should you lock in that rate?

Rates are bound to eventually go up.  With the holidays in full swing and the new year on the horizon it is uncertain if rates will continue to remain so low.

These rates are so incredibly low it would be foolish not to get a loan locked into a fixed rate if you can, whether for a refinance or a purchase.

There are some great options for people out there too.  There are loans for people with poor credit, and refinance options for people that are upside down in their mortgage.

Need to calculate your mortgage? Try our Mortgage Calculator.

Mortgage Rates Fall Again – November 11th

After a few weeks of fairly steady rates, mortgage rates have decided yet again they are not ready to stop setting record lows.

Over the past week the average national mortgage rates have decreased across the board.

According to Freddie Mac’s Primary Mortgage Market Survey, which takes the average rates offered by banks and lenders across the nation and averages them out, rates for this week look like this.

November 11, 2010 30-Yr FRM 15-Yr FRM 5/1-Yr ARM 1-Yr ARM
Average Rates 4.17 % 3.57 % 3.25 % 3.26 %
Fees & Points 0.8 0.8 0.7 0.7

These are new lows compared to last weeks numbers:

November 4, 2010 30-Yr FRM 15-Yr FRM 5/1-Yr ARM 1-Yr ARM
Average Rates 4.24 % 3.63 % 3.39 % 3.26 %
Fees & Points 0.8 0.7 0.6 0.7

It is obvious to see that rates are not ready to climb back up the ladder quite yet.

Not since October 14th when rates were 4.19% on the 30 year fixed, have rates been down this low.

Will this trend continue?

No one can forecast what rates will do with 100% certainty, but there doesn’t appear to be anything on the economic horizon that would suggest mortgage rates go any other direction but down.  Perhaps they steady out or even bump back up slightly, but it may be a while before we see a significant rise in mortgage rates.

Doing a mortgage yourself? Check out these mortgage help articles.  What is PMI? and How is APR Calculated?

National Mortgage Rates – November 4th

Mortgage Rates for November 4th have pretty much held steady.

This weeks average rates according to the Primary Mortgage Market Survey from Freddie Mac are as follows.

November 4, 2010 30-Yr FRM 15-Yr FRM 5/1-Yr ARM 1-Yr ARM
Average Rates 4.24 % 3.63 % 3.39 % 3.26 %
Fees & Points 0.8 0.7 0.6 0.7

Last week the rates looked like this.

  • 30 year – 4.23%
  • 15 year – 3.66%
  • 5/1 ARM – 3.41%

What can we expect from here on out?

The huge swing of power in the elections are sure to affect consumer confidence, which in turn will affect the economy and eventually trickle into interest rates.

As things start unfolding we will be sure to let you know the details.

Until then it is a great time to take advantage of purchasing a new home or refinancing your existing home.

Mortgage Rates Up 2 Weeks in a Row – Oct 28

According to the Freddie Mac Primary Mortgage Market Survey mortgage rates are up for the 2nd week in a row.

October 28, 2010 30-Yr FRM 15-Yr FRM 5/1-Yr ARM 1-Yr ARM
Average Rates 4.23 % 3.66 % 3.41 % 3.30 %
Fees & Points 0.8 0.7 0.6 0.7

Last week the 30 year rate was sitting at 4.21%. The 15 year was 3.64, and once again while the 30 and 15 year fixed raise the 5/1 AMR dipped once more from 3.45% last week to 3.41% this week.

Should you lock if you have the chance?

I was visiting an old loan officer friend of mine and I overheard him on the phone talking to a client.  He said to them, “I wouldn’t lock yet as rates are up and you may have the opportunity to lock at a lower rate.”

Should you follow this advice as well?  Absolutely NOT.

Your situation is going to be much different than others.  You need to be sure you have a professional loan officer whom you can count on to give you sound advice for your loan in particular.

Now with that said rates are extremely low right now and if you have the chance to lock in a new rate in the low 4 or high 3 percentage range I say look into it.

If you want to crunch some numbers for your new home loan try our home loan calculator.

Mortgage Rates Back Bounce Back Up a Little This Week – Oct 21st

Mortgage Rates decided to rebound a little this week, but by no means is this any indication that they will continue to rise.

We have seen rates bump back up like this a few times in the past only to see them drop even more the following week.

October 21, 2010 30-Yr FRM 15-Yr FRM 5/1-Yr ARM 1-Yr ARM
Average Rates 4.21 % 3.64 % 3.45 % 3.30 %
Fees & Points 0.8 0.7 0.6 0.7

Last week the 30 year was at 4.19%.

The 5/1 ARM has actually continued downward falling from 3.47% last week.

When will rates start heading back up?

It is hard to say when rates will head back up.  With the election coming, the holidays and a new year we could see the economy start doing better.

Old article?  Check out the Mortgage Rates here.

Mortgage Rates Just Keep Going Down Oct 14

Mortgage rates are continuing to go down down down.

According to the Primary Mortgage Market Survey from Freddie Mac mortgage rates have dropped again.

Rates have been steadily dropping for months.  There have been a few times rates looked like they were going to head back up, like in mid September, but inevitably they reverse course and continue downward.  At this rate it is only a matter of time before we see the 30 year fix rate drop below 4%.

October 14, 2010 30-Yr FRM 15-Yr FRM 5/1-Yr ARM 1-Yr ARM
Average Rates 4.19 % 3.62 % 3.47 % 3.43 %
Fees & Points 0.8 0.7 0.6 0.8

Will this continue on to 2011?

You can never tell with 100% certainty what interest rates are going to do as we near the close of 2010.  There is a huge event happening in November that could have some effects on the economy and possibly affect the rates.

That event is the mid term elections.  As it looks right now there is a possibility of a change of power in the house and/or senate.  A large change of power could effect consumer confidence for the positive or negative and have a huge effect on the economy.  We could see this trickle down into mortgage rates as 2010 ends and 2011 begins.

What we know right now is that rates are extremely low and if you have an opportunity to refinance or purchase a home it is a great time to do so.

Did you know you can refinance an upside down mortgage?

Mortgage Rates Drop Again – New Record Oct 7th

According to the Primary Mortgage Market Survey from Freddie Mac the new average mortgage rates have yet again hit a new low.

October 7, 2010 30-Yr FRM 15-Yr FRM 5/1-Yr ARM 1-Yr ARM
Average Rates 4.27 % 3.72 % 3.47 % 3.40 %
Fees & Points 0.8 0.7 0.6 0.7

This information is based on Mortgage Companies all over the nation.  Freddie Mac compiles the information and averages it out to determine where rates stand today.

Is time to take Action?

You know from reading my mortgage updates in the past that I believe it is no time to drag your feet.  If you are in a position to be able to refinance now is the time to jump on board.

What if you are say 12 years into a 30 Year mortgage, is it worth refinancing then?

This is an excellent question and one that takes some research on your part to answer.  If you are around 12 – 15 years into your mortgage then chances are you are paying much more of the principle with each and every payment.  (Interest is front loaded and you pay nearly 90% interest in the first 10 years of a mortgage.)

Therefor if you are paying mostly principle now why refinance.  Well in this case there are only three factors you need to consider and that is TERM, TERM and TERM.

If you can refinance into a 10 year mortgage and have a similar payment because rates are so low, you just knocked 8 years of your mortgage.  Do not and I repeat DO NOT refinance into another 30 year mortgage if you are many years into your current 30 year fixed.

Consider your options and have your loan officer show you the options for a 10 year and 15 year mortgage.

If you want some more help check out our mortgage tips.

Long Term Rate Locks? & Sept 24th Mortgage Update

The Freddie Mac Primary Mortgage Market Survey is showing average mortgage rates are unchanged from last week.

This weeks rates are…

  • 30-Yr Fixed – 4.37 %
  • 15-Yr Fixed – 3.82 %
  • 5/1-Yr ARM – 3.54 %

There was one slight decrease for the 5/1 ARM.  Last week it sat at 3.55%

Old Article? See todays Mortgage Rates.

If you are still on the fence about locking today or waiting just a little longer consider this.

Mortgage Rates have not been this low for over 50 years.  Plus mortgage rates are subject to change any minute.  They could shoot drastically up at any point leaving you in the dust.

If I was in a place to refinance or if I was purchasing a home I’d definitely be calling my broker and locking today.

Is it worth Locking Long Term for Purchases?

Rates are so low right now many people are locking in rates for 90, 120 and even 150 days in the event they find their home in the next few months.  Depending on how seriously you are currently looking for a house this may be an option suitable for you.

Be careful to not lock too far out because the length of your lock will affect your rate.  The longer the lock period the higher the rate will be.

The benefit of doing this is because of the volatility of the market right now.  Yes, we could see rates drop more, but it is just as likely, if not more likely, to see them increase over the next few months.

Locking in your rate now would insure you get that rate for the term you indicate in your loan.

Call your Loan Officer today to get some of the options for long term locking.  And checkout our mortgage help article if you are thinking about purchasing or refinancing.

Mortgage Rates are Up and Down – September 16th

For the second straight week the 30 year mortgage rates have moved up, but the 15 year and 5 year ARM have decreased slightly.

Before we get into the speculation lets see the rates for this week.

  • 30-Yr Fixed – 4.37 %
  • 15-Yr Fixed – 3.82 %
  • 5/1-Yr ARM – 3.55 %

And compare those to last week…

  • 30-Yr Fixed – 4.35 %
  • 15-Yr Fixed – 3.83 %
  • 5/1-Yr ARM – 3.56 %

It is pretty hard to draw any conclusions based on these rates.  At the very basic assessment rates are still incredibly low and if you are able to refinance or are purchasing a home you should count yourself lucky.

Is it worth waiting to see if they get lower?

No.  Could they get lower? Yes, but at this point rates have not been this low for half a century.  It is not worth the risk to hold out for lower rates.  If there is even a sniff of a strengthening housing market or economy you can expect to see these rates jump back up.

These rates are based on the Freddie Mac Primary Mortgage Market Survey.  Banks all over the nation are polled for there current rates and these are the averages.

The 30 year fixed is base off of 0.7% points, while the 15 year and the 5/1 ARM are based off of 0.6% points.

Old Article? See todays mortgage rates.

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