For the first time in seven weeks, Freddie Mac (a government-sponsored enterprise who helps to expand the secondary mortgage market by buying mortgages, pooling them, and selling them as mortgage-backed securities) reported a .32% increase on average 30-year fixed loan rates, based on findings from its Primary Mortgage Market Survey. The average 30-year loan rate now sits at 6.04%. This sudden, yet foreseeable rise can be attributed to recent inflation concerns.
15-year fixed loans and five-year adjustable-rate mortgages (A.R.M.s) also experienced an upward change this week. The 15-year fixed loan rates moved from 5.25% to 5.64%, while the five-year A.R.M.s saw a less significant bump from 5.19% to 5.37%.
Were any mortgage rates safe from the turning market this week? One-year A.R.M. rates actually slipped further down to 4.98%. All in all, though, the most popular loans for homeowners underwent a serious adjustment this week. Will they continue to rise or will they level off? No one knows that for sure, but we do know that last year at this time 30-year fixed rates averaged 6.22% and that in 2007 the rates reached as high as 6.74%. Wouldn’t it be great to lock something down now before they creep that high again? Rates are still low…take advantage!
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