The average rate you’ll pay for a 30-year fixed mortgage is 4.49 percent, up 8 basis points over the last seven days.
Multiple benchmark mortgage rates ticked up this week. The average rates on 30-year fixed and 15-year fixed mortgages both cruised higher. Meanwhile, the average rate on 5/1 adjustable-rate mortgages also trended upward.
Rates for mortgages are in a constant state of flux, but they have remained in a historically low range for quite some time. If you’re in the market for a mortgage, it could make sense to go ahead and lock if you see a rate you like. Just make sure you shop around first.
The average rate you’ll pay for a 30-year fixed mortgage is 4.49 percent, up 8 basis points over the last seven days. A month ago, the average rate on a 30-year fixed mortgage was lower at 4.43 percent.
At the current average rate, you’ll pay a combined $506.09 per month in principal and interest for every $100,000 you borrow. That’s an increase of $4.74 over what you would have paid last week.
The average 15-year fixed-mortgage rate is 3.91 percent, up 6 basis points over the last seven days.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $735 per $100,000 borrowed. That may squeeze your monthly budget than a 30-year mortgage would, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.
The average rate on a 5/1 ARM is 4.20 percent, up 7 basis points over the last seven days.
These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.
Monthly payments on a 5/1 ARM at 4.20 percent would cost about $489 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan’s terms.
Most experts believe rates will continue to rise.
Michael Becker, a branch manager at Sierra Pacific Mortgage, said, “Treasury yields and mortgage rates are rising this week. As concerns about the makeup of the new Italian government fades, markets have switched back to ‘risk-on’ mode where bonds are sold off and rates rise.
“Another contributing factor to an increase in rates are comments made by several members of the European Central Bank that next week’s meeting could be the meeting where the end of Quantitative Easing of QE is announced. With the Fed also meeting next week and expected to hike rates, I think the coming week will bring higher mortgage rates.”
Shaun Guerrero, a branch manager at New American Funding, also sees the trend continuing. He said, “Interest rates took a little bit of a dip last week in our favor. It looks to be short-lived though. With inventory at record lows, the housing market continues to show its strength by being up 9 percent year-over-year - all while interest rates have increased, and they don’t look to be slowing down anytime soon. My advice is to lock in your loans this week if you have a loan in process.”