Mortgage Rates Rise for Week of Sept 21

This week's mortgage rates went in mixed directions as Fixed-rate mortgage (FRM) rates increased, while 5/1 ARM rates fell from last week's rate of 4.32 percent to 4.27 percent. Rates for a 30-year FRM moved up from last week's 5.17 percent to 5.19 percent, and average mortgage rates for a 15-year FRM increased by one basis point from 4.65 percent to 4.66 percent.

Rising Credit Scores = Lower Mortgage Rates

Managing debt and removing errors on your credit reports can help improve your credit scores. Order free copies of credit reports from each credit bureau; you are legally entitled to one free copy of each report annually. You'll have to purchase credit scores, but you can order your annual credit reports and credit scores here.

• Check for credit reporting errors: Review your credit reports for errors, and verify that your personal information is correct. Check account information to ensure that no unauthorized accounts appear in your name.
• Keep track of debts: Make note of your assigned credit limit for each account, and the current balance for each debt. Pay down credit card debt to no more than 30 percent of your assigned credit limits.
• Establish and/or add to savings: Establish a savings account if you don't have one, and arrange for scheduled direct deposits or transfers from checking to your savings account.
• Remove negative information: This isn't about promotions promising to banish bad credit, but if you have a completed foreclosure or discharged bankruptcy showing on your credit report for more than seven years (foreclosure and Chapter 13 bankruptcy) or ten years (Chapter 7 bankruptcy), contact the applicable credit bureaus and request to have it removed.
• Don't fall for "credit repair" gimmicks: The only way to improve your credit by paying bills on time, reducing debt, and eliminating incorrect information from your credit reports. Avoid any services or counselors that promise overnight credit repair.

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