Mortgage rates are inching up, what are you going to do?!

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!

If you enjoyed reading this article, subscribe here
to receive the next one we post by email!

About Doug Hill

Doug Hill is an Associate Broker with Coldwell Banker Residential Brokerage, and founded The Hill Group with his wife, Kirsten in 2003. Combined, they have helped over 1,000+ clients buy and sell homes in the Phoenix Metropolitan Area. Doug holds a Bachelor's Degree in Business Management & Economics, and is a Navy veteran. He is an active member of the Southeast Valley Regional Association of Realtors on their Professional Standards Board, and he and his wife have had the #1 team for Coldwell Banker in Arizona for multiple years in a row. He loves to read, travel, and spend time with his family and friends.
Posted in For Buyers, For Homeowners, National Real Estate News and tagged , , . Permalink.