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Mortgage rates remain the same for the week of March 17, 2014

Posted by  on Mar 24, 2014
 

Mortgage rates moved very little last week but are expected to rise this week after a press conference given by Fed Chair Janet Yellen indicated that the Fed will likely raise the federal funds interest rate sometime in the spring or summer of 2015. Anticipation of a hike in interest rates led to a sell-off in the bond market that pushed mortgage rates higher at week's end.

Mortgage rates last week

According to HSH.com, last week the overall average rate for a 30-year fixed-rate home loan declined by one basis point (0.01 percent) to 4.43 percent. Average rates for 15-year fixed-rate mortgage loans stayed the same at 3.55 percent. Rates for FHA-insured, 30-year fixed-rate home loans rose by three basis points (0.03 percent) to an average rate of 4.10 percent. The average rate for a 5/1 Hybrid Adjustable Rate Mortgage (ARM), dropped by one basis point (0.01 percent) last week to an average rate of 3.08 percent. Compare mortgage rates for your area before refinancing or applying for a purchase loan.

Federal Reserve and mortgage rates

The Fed announced a continuing tapering of buying mortgage-backed securities and U.S. Treasuries while also dropping the idea that a 6.5 percent unemployment rate would trigger an increase in interest rates. The mixed-bag of economic news can change the Fed's direction at any time, of course, but it appears that mortgage rates are headed up by the end of this year.

Depending on your current interest rate and the terms of your loan, refinancing may still be a viable option for meeting your financial goals such as switching to a shorter loan term. A mortgage calculator can help you estimate your refinancing options.

This week mortgage rates are likely to rise a little.

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

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