Mortgage Rates Fall for Week of August 17
Mortgage rates fell this week, with the rate for a 30 year fixed rate mortgage (FRM) dropping three basis points from an average of 5.38 percent to 5.35 percent. Mortgage rates for a 15 year FRM fell from 4.83 percent to 4.78 percent, while average rates for a 5//1 adjustable rate mortgage (ARM) dropped showed the most significant decline from 4.56 percent to 4.43%. Lower mortgage rates are promptinghome buyers to jump off the fence and into the market, as indicated by reports of increasing home sales.
Low Mortgage Rates Stimulate Buying
Owning a home becomes a possibility for first time buyers when mortgage rates fall, and refinancing for interest rate reduction, debt consolidation and home improvement projects is more affordable. The Wall Street Journal reports that sales of existing homes increased by 7.2 percent, which is the fourth consecutive monthly increase. Don't be discouraged by increasing home sales, as the July figure remains 28 percent below September 2005's record for existing home sales.
Refinancing and Your Finances
If you already own a home, today's low mortgage rates can provide an opportunity for reducing your current mortgage rate, or taking additional cash for consolidating debt or updating and remodeling your home. Before contacting mortgage lenders, check your credit scores and estimate how much additional cash you'll need if you want a cash-out refinance.
Shopping Mortgage Lenders Online
Compare mortgage rates by shopping mortgage lenders online. Getting multiple quotes can help you compare rates, features, and benefits of mortgage loans being offered. Advantages of shopping mortgage rates and lenders online include learning about mortgage loan products, comparing mortgage rates, closing costs, and points without pressure, and assembling several mortgage quotes for negotiating with mortgage lenders. Doing some research can help your find the best mortgage rates and loan type for your needs.
Our live database of current mortgage rates can help you find the best mortgage rates in your area.
