Mortgage rates rise slightly


Multiple benchmark mortgage rates rose this week. The average rates on 30-year fixed and 15-year fixed mortgages both rose. Meanwhile, the average rate on 5/1 adjustable-rate mortgages also notched higher.

Mortgage rates change daily, 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 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 4.40 percent, an increase of 1 basis point since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 4.43 percent.

At the current average rate, you’ll pay $500.76 per month in principal and interest for every $100,000 you borrow. That’s an additional $0.59 per $100,000 compared to last week.

The average 15-year fixed-mortgage rate is 3.82 percent, up 3 basis points since the same time last week.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $731 per $100,000 borrowed. That may put more pressure on 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 4.10 percent, ticking up 2 basis points from a week ago.

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 4.10 percent would cost about $483 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.

Most financial experts expect rates to hold steady in the near future.

Logan Mohtashami, a senior loan officer with the AMC Lending Group, said, “Turkey’s currency collapse and 10-year yield blow-up took over the bond market and yields have been falling ever since. With that said, key levels for me on the 10-year yield are 2.78 percent. If we can close below that level and get some follow-through action then we’ll have legs to go lower in yields.

“However, we are still some basis points away from that at 2.84 percent 10-year yield today. We have been in a very tight range for some time now on the 10-year yield and, for it to crack lower, we need to more damage done on Global PMI data, which really needs oil to fall more. Today we are .24 basis points away from my yield inversion call for 2018.”

Nations Lending sales manager Elizabeth Rose said, “Rates will be unchanged. We are in the midst of a rally right now, but I do not think it will last. Bonds likely will settle back down to their sideways path. I expect rates to remain unchanged in the coming week.”

Jim Sahnger, a mortgage planner with C2 Financial Corporation, added, “From an economic data perspective, there has been a lot of mixed numbers that point to strength in some areas and not so much in others. That, in conjunction with continued tariff tensions and the latest news out of Turkey, leads to not much action in the bond market or mortgage rates. Look for rates to hold tight.”