Mortgage Rates Rise for Week of February 15

Mortgage rates moved up during the past week, a signal that all good things must come to an end. With the federal home buyer tax credit deadline of April 30 rapidly approaching, eligible home buyers may start scrambling to sign purchase contracts in order to qualify. Although it's possible that the home buyer tax credit may be extended again, there are no guarantees--particularly as the federal government continues to receive criticism for excessive spending and the growing the federal budget deficit.

Current Mortgage Rates Remain Affordable

Average rates collected by HSH Associates for a 30-year fixed-rate mortgage (FRM) moved from 5.36% to 5.41%, while average mortgage rates for a 15-year FRM increased by 4 basis points from 4.76% to 4.80%. Rates for 5/1 adjustable rate mortgage (ARM) loans moved up very slightly, from 4.57% to 4.58%. These modest increases certainly aren't going to fuel any buyer panic, but as spring approaches, housing markets will likely become more active.

Here are some tips for getting ready for shopping for mortgage loans and your next home:

• Review your credit reports and scores. You can order free annual credit reports and purchase your credit scores for a small fee. Review your credit reports for errors. Knowing your credit scores will help with estimating the mortgage rates you may qualify for.
• Calculate affordability. Using online mortgage calculators can help you estimate how much you can afford to spend on a home based on a targeted monthly payment, mortgage rate, and repayment term. You can also use calculator tools for comparing mortgage quotes.
• Preapproval. Getting preapproved for a mortgage loan can help you save time and make a good impression on sellers. Being approved for a mortgage expedites closing the deal; it can also support your negotiating position during the purchase process.

Adequate preparation in the mortgage process can help you avoid unpleasant surprises. Avoid the stress of scrambling for for home financing while you make an offer by getting started on the process early.

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