Mortgage Rates Mixed for Week of June 5

The party can't last forever and it's not over yet, but two benchmark mortgage rates rose slightly last week. This may signal a return to higher mortgage rates as the summer home buying season heats up.

With talk of record-low mortgage rates persisting for weeks, the bad news for homeowners and home buyers is that average rates rose (ever so slightly) last week.

HSH Associates reports that average rates for a 15-year fixed-rate mortgage ticked upward by 1 basis point (0.01%) from to 4.47% 4.48%. Average rates for a 5/1 adjustable-rate mortgage (ARM) also rose 1 basis point but remains an excellent opportunity at 4.03%. Average combined rates for a 30-year fixed-rate mortgage, however, remained steady at 5.00%.

Foreclosures, Stagnant Home Prices Swamp Housing Markets

Today's low mortgage rates represent outstanding opportunities for first-time buyers, or for anyone seeking a great deal on mortgage loans and refinancing. For potential buyers, large numbers of available homes and the ongoing threat of more foreclosed homes coming on the market are keeping prices down in many areas. Low home prices and rock-bottom mortgage loan rates are increasing buying power and making homes more affordable for those who qualify.

Macroeconomic circumstances are providing potentially excellent opportunities for anyone meeting the credit and other financial criteria for a new mortgage loan or refinance.

State and Local Resources for Down Payment Assistance

Local real estate professionals and mortgage lenders can help you find state housing and community programs offering low- or even no-cost loans for eligible first-time buyers. Income restrictions may apply, and programs guidelines vary, but it's worthwhile to look into these programs if your only reason for not buying a home is lack of funds for meeting your down payment and closing costs.

The Federal Housing Administration (FHA) is another home loan option for those who have less to put down for their home purchase. FHA even offers funding for home renovations and repairs through its FHA 203(k) program.

Mortgage lenders can help you find the right mortgage at a nice price, but no one expects microscopic mortgage rates to last indefinitely. Our live database of current mortgage rates can help you find the best mortgage rates in your area.