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Mortgage rates fall for the week of February 3, 2014

Posted by  on Feb 11, 2014
 

In spite of the predictions that mortgage rates would begin to climb in 2014, rates have dipped in recent weeks. While this is good news for borrowers, it doesn't bode well for the health of the overall economy.

Mortgage rates fall across the board

According to HSH.com, last week the overall average rate for a 30-year fixed-rate home loan dropped by seven basis points (0.7 percent) to 4.38 percent. Average rates for 15-year fixed-rate mortgage loans dropped by five basis points (0.05 percent) to 3.53 percent. Rates for FHA-insured, 30-year fixed-rate home loans declined by seven basis points (0.07 percent) to an average rate of 4.00 percent. The average rate for a 5/1 Hybrid Adjustable Rate Mortgage (ARM) declined by four basis points (0.04 percent) to an average rate of 3.09 percent. Compare mortgage rates for your area before refinancing or applying for a purchase loan.

If you want to take advantage of these low rates but aren't sure of the impact on your monthly payments or whether you can afford to shorten your loan term, use a mortgage calculator to make some initial estimates and then discuss your options with a lender.

Weak economy equals low mortgage rates

December's employment report, even after it was revised, showed a paltry 75,000 new jobs for that month and last Friday's release of the January jobs report was also lackluster at 113,000. Last week the Federal Reserve stated that it plans to continue tapering the quantitative-easing-bond-buying program, but it's possible that if a third weak employment report comes in for February that the Fed will opt to hold off on its plans to taper.

For this week, mortgage rates should change very little, possibly rising slightly.

Our live database of current mortgage rates can help you find the best mortgage rates in your area.

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