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Mortgage rates rise for the week of March 24, 2014

Posted by  on Mar 31, 2014
 

As expected, the comments by Fed Chair Janet Yellen about future increases in interest rates sent mortgage rates higher last week, in spite of the fact that the Fed's actions won't take place until sometime in 2015, if then.

Mortgage rates last week

According to HSH.com, last week the overall average rate for a 30-year fixed-rate home loan rose by five basis points (0.05 percent) to 4.48 percent, the highest level in two months. Average rates for 15-year fixed-rate mortgage loans rose by seven basis points (0.07 percent) to 3.62 percent. Rates for FHA-insured, 30-year fixed-rate home loans rose by four basis points (0.04 percent) to an average rate of 4.14 percent. The average rate for a 5/1 Hybrid Adjustable Rate Mortgage (ARM), rose by nine basis points (0.09 percent) last week to an average rate of 3.17 percent. Compare mortgage rates for your area before refinancing or applying for a purchase loan.

FHA loans and refinancing

FHA loans have the lowest mortgage rates among 30-year loan options, but don't forget that these loans also require hefty mortgage insurance payments for every mortgage, regardless of the amount of home equity you have. FHA loans are still a good choice for those with credit challenges or low equity. A mortgage calculator can help you estimate your refinancing options.

This week, plenty of economic data will be released that will impact mortgage rates. If, as expected, those reports are better than the data from January and February, mortgage rates are likely to rise a little. On Friday, April 4, the jobs report for March will be released. If it's a good one, expect mortgage rates to spike higher that day and for at least several days beyond.

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

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