Mortgage Rates Mixed for Week of March 15

Spring is the rebirth of the home shopping season as warmer weather returns. Even if you're staying put in your home, the new season may inspire you to seek a mortgage refinance for home improvement projects or clearing away lingering credit card bills.

This Week's Mortgage Rates Could Signal a Trend

HSH Associates reports that average combined rates for a 30-year fixed-rate mortgage (FRM) remained static at 5.31% while rates for a 15-year FRM moved up from 4.69% to a combined average of 4.72%. 5/1 hybrid ARM rates also ticked upward by 5 basis points to a combined average rate of 4.49%. Combined average rates are calculated using rates for both conforming mortgage loans and jumbo mortgage loans. Although these changes are slight, they may signal rising mortgage rates.

Housing Markets and Mortgage Rates: Good and Bad News?

Spring and summer are the busiest seasons for buying and selling homes; more buyers could boost sagging housing markets throughout the US. An instant recovery or skyrocketing mortgage rates aren't likely, but buying now if you're ready may help you avoid the major uncertainty in the next few months' home prices and/or mortgage rates. As demand for homes increases, so do prices; higher home prices coupled with rising mortgage rates could make it more challenging to find the home you want at an affordable payment.

Mortgage Preapproval Offers Benefits

Getting approved for a mortgage loan before shopping for your next home provides several benefits:

• Better chances when facing multiple offers. Buyers who have already been approved for a mortgage may receive preference from sellers considering multiple offers.
• Focus on affordable homes. Once you've been approved for a mortgage loan, you know your price range. This eliminates wasted time and potential problems with buying a home you can't afford.
• Less chance of "surprises" after making an offer. No one wants problems with their mortgage application after making an offer. If you're already approved for a mortgage, financing complications are less likely, although individual situations can vary.

With mortgage rates still around 5%, it's a great time to shop for a mortgage. Our live database of current mortgage rates can help you find the best mortgage rates in your area.