If anyone asks you what's up, you can reply, "mortgage rates!"
HSH Associates is reporting the average combined rate for 30-year fixed-rate (FRM) loans at 5.33 percent, up from 5.17 percent. Although mortgage rates for 15-year FRM loans remain lower than mortgage rates for 30-year loans, the rates for a 15-year FRM increased by 13 basis points to 4.61 percent. Average combined rates for a 5/1 adjustable-rate mortgage (ARM) loan, increased by 16 basis points to 3.99 percent.
Rising mortgage rates: Blame it on commodity prices
Financial analysts are citing rising commodity prices as a primary reason for increasing long-term interest rates; mortgage rates are included in this category. Whatever the reason, if you're planning to buy a home or refinance your current mortgage loan, it's important to put this week's news in perspective. Mortgage rates remain below historical averages, and so far, rising rates don't seem to be putting off buyers and homeowners seeking refinancing.
As spring approaches, the home buying market also warms up. Fence-sitting may not be feasible for much longer if you want to get in on lower mortgage rates. As home sales increase, so does demand for mortgage loans, and this can also drive mortgage rates higher.
Before looking at available homes, request a few online mortgage quotes and see what's available. From FHA loans with lower down payments to jumbo loans that can finance your personal palace, mortgage lenders can assist with finding the right mortgage loan, and can also help with refinancing. Using free online mortgage calculators is helpful for comparing mortgage loan quotes.
Our live database of current mortgage rates can help you find the best mortgage rates in your area.