Mortgage rates rise for week of October 25, 2010
Mortgage rates for both 30 year and 15 year fixed rate mortgage (FRM) loans rose last week HSH Associates reports that average combined rates for a 30 year FRM rose from 4.58 to 4.64 percent, while average combined mortgage rates for a 15 year mortgage rose by seven basis points to 4.09 percent. Average combined rates for a 5/1 adjustable rate mortgage (ARM) slipped by one basis point to 3.53 percent.
Mortgage Loans: Foreclosures figure in gloomy housing markets
While mortgage rates rallied last week, the overall news for U.S. housing markets isn't so good. With 4.2 million mortgage loans reported as "seriously delinquent," and an estimated 10.9 million homes worth less than the mortgage loans owed against them, it may be awhile before housing prices recover. For buyers, there may be no urgency in terms of home prices, but there are no guarantees that mortgage rates will remain near all-time lows.
Home Loans: Are you ready to buy?
Here are some considerations when planning to purchase a home or refinance your mortgage.
- Affordability: Getting a good deal on a home, and qualifying for low mortgage rates is helpful, but having the resources for covering an emergency is also important. 30 year mortgage loans are not necessarily compatible with today's volatile economy and job markets; having a plan "B" in place in case of layoff or other major change is essential.
- How long will you live in the home you're buying: In general, you'll want to plan on staying in your home for a few years.
- The true cost of owning a home: The excitement of buying your first home can overshadow the reality of what it costs to maintain a home. In addition to making mortgage payments, which may also include funds for paying property taxes, hazard insurance, and mortgage insurance, you'll have to budget for home improvements and repairs, and trash collection, water, and other expenses you didn't cover as a tenant.
Our live database of current mortgage rates can help you find the best mortgage rates in your area
