Current Mortgage Rates Up
For the week ending April 1, 2010, Primary Mortgage Market Survey from Freddie Mac shows that the average 30-year, fixed-rate mortgage (FRM) rate was 5.08 percent during week ending April 1. The same figure was 4.99 percent last week, and 4.78 percent this time last year.
As usual, the Mortgage Bankers Association's figures for today's mortgage rates differ slightly from Freddie Mac's (they're calculated over different periods, using different sources), but the MBA's weekly survey confirms the upward trend.
Best Mortgages Rates: the Cash Advantage
The MBA is currently forecasting that the 30-year FRM rate will average six percent this time next year (during the first quarter of 2011), and that really doesn't sound all that different from today's mortgage rates. But, of course, small rises can add up to big bucks, especially over the 30-year lifetime of a mortgage.
According to the ShopRate mortgage calculator, a $200,000, 30-year FRM at today's mortgage rates would have monthly repayments of $1,083.44, which would add up over the lifetime of the loan to $390,039. Anyone waiting a year, and having to pay six percent for exactly the same mortgage, would have to pay $1,199.10 a month, or $431,676 over 30 years.
If the $115.66 a month difference isn't sobering, the $41,637 total certainly should be. Think how much difference that could make to your comfort when you're retired.
Mortgage Loans and Some Rare Good News
There have been a couple of pieces of good news on the mortgage front this week. First up: yesterday's Boston Globe included some positive statistics concerning mortgage delinquencies. They concerned home owners who have privately insured mortgages.
In February, 68,675 of these fell behind with their mortgage payments, compared with 80,758 who got themselves out of trouble by catching up on their installments. That's the first time that total delinquencies have fallen in very nearly four years, a situation that one analyst told the Globe "signals a turning point".
The second piece of good news is best told by Frank Nothaft, who's Freddie Mac's chief economist. He says:
Home-price declines continue to moderate with more metropolitan areas showing stabilizing or rising values. Compared with one year ago, house prices were down 0.7 percent in January 2010 in the S&P/Case-Shiller® 20-City Composite Index, which was the smallest 12-month decrease since January 2007. Nine of the cities experienced positive growth, led by San Francisco's 9.1 percent annual gain.
What You Can Do
If your confidence in the housing market is returning, and you want to take advantage of some of the best mortgage rates for 50 years, get a mortgage quote here.