Mortgage Rates Mixed for Week of April 26
This week's mortgage rates remain low and continue to offer affordable opportunities for buying or refinancing homes.
Average combined mortgage rates varied slightly this week, according to HSH Associates. Rates for a 30-year fixed rate mortgage (FRM) remained flat at 5.36%, while rates for a 15-year mortgage ticked upward by one basis point from 4.76% to 4.77%. Rates for a 5/1 hybrid adjustable-rate mortgage (ARM) moved down one basis point from 4.42% to 4.41%.
Mortgage Tax Credit Expires, but Mortgage Rates Provide Affordable Opportunities
Although the deadline for the federal tax credit has passed, current mortgage rates remain relatively affordable for those still considering buying or refinancing a home. First-time and moderate-income buyers can benefit from the low rates available with a 5/1 ARM loan, which provides a lower initial rate for 5 years and converts to an adjustable rate thereafter. No one can know where mortgage rates will be in five years, but the low initial fixed rate of a hybrid ARM provides initial stability that can be valuable to buyers who need cash flow for establishing their new home.
Low Mortgage Payments Assist with Transition from Renting to Owning
Along with the excitement of buying a first home comes additional expenses. Planning for these expenses ahead of time can help prevent a cash crisis when the basement floods or the sink backs up. Here are typical expenses for homeowners that you may not pay as a renter:
- All utility bills, including water
- Trash collection service
- Lawn care and maintenance
- Home repairs and maintenance
- Property taxes and hazard insurance (these may be included in your mortgage payment)
- HOA fees (for condominiums)
Saving for unexpected expenses is essential; it may be tempting to forgo saving in favor of buying new furniture and a ginormous flat screen TV, but don't do it if you won't be able to add to your emergency savings every month.
Established homeowners can benefit from current mortgage rates by refinancing to lower rates and converting from adjustable or exotic mortgage loans to an FRM offering stable principal and interest (P&I) payments.
Our live database of current mortgage rates can help you find the best mortgage rates in your area.
