Mortgage Rates Mixed for Week of December 14
Average mortgage rates for a 30-year fixed-rate mortgage (FRM) rose, while average rates for 15-year FRMs and 5/1 adjustable-rate mortgages (ARMs) fell slightly. Mortgage rates remain a good deal as they continue to hover near 5%.
Although average mortgage rates for 30-year fixed-rate mortgages (FRMs) rose from 5.01% to 5.03%, rates for 15-year FRMs and 5/1 adjustable rate mortgages (ARMs) fell slightly. The average rate for a 15-year FRM fell by 6 basis points, from 4.56% to 4.50%. 5/1 ARMs provide an even better deal for those looking to minimize interest payments early in the loan; average rates fell from 4.28% to 4.25%.
Low Mortgage Rates Won't Last Forever
Although low mortgage rates have prevailed for the past year or so, most experts think they are likely to rise in the coming year. Continuing concerns about unemployment and real estate markets are causing lingering depressions in real estate markets in many areas, but prices are recovering. This is great news for the economy and housing markets but may signal tough times ahead for first-time buyers or those seeking rock-bottom pricing in traditionally high-cost areas.
Home Buyer Tax Credit, Community Home Buyer Plans Can Help
If you're ready to buy but are short on cash, the federal home buyer tax credit, local community home buyer programs, and state housing finance agencies can help. Housing finance agencies partner with mortgage lenders to provide affordable mortgage rates and mortgage education seminars and also offer low-interest secondary financing to assist with down payments and closing costs. When shopping for mortgage loans, ask prospective lenders about housing finance agency and first-time buyer programs in your area.
Getting Mortgage Quotes: More than Comparing Rates
When shopping for mortgage loans, its important to know how much you can afford on monthly payments and how to evaluate mortgage quotes for finding your best deal. In addition to comparing mortgage rates, compare the annual percentage rate (APR) shown on cost estimates. The APR includes the mortgage rate and additional costs associated with a mortgage loan. Variations in APRs between two loans of identical amounts borrowed and identical interest rates is due to differences in lender charges and closing costs. Shop carefully and pay close attention to lender fees and charges. Using online mortgage calculator tools can help you compare mortgage quotes and estimate potential savings.
Our live database of current mortgage rates can help you find the best mortgage rates in your area.
