Fixed Mortgage Rates Stay Low..... for now?
Fixed Mortgage Rates Stay Low for now, Then what?
Ever though Fixed mortgage rates continued to mostly hold steady this week, amid mixed economic reports and some signs of an improving housing market, Freddie Mac reports in its weekly mortgage market survey.
However, one rate was on the move: the five-year adjustable-rate mortgage took a dip, reaching a new
record low at 3.22 percent.
Here's a closer look at mortgage rates for the week:
A 30-year fixed-rate mortgage: averaged 4.51 percent, which is up slightly from last week's 4.50
percent average. A year ago at this time, the 30-year rate averaged 4.58 percent.
A 15-year fixed-rate mortgage: averaged 3.69 percent, which is the same as last week's average.
Last year at this time, the 15-year rate averaged 4.04 percent.
A 5-year adjustable-rate mortgage: reached a new low of 3.22 percent, compared to last week's 3.25 percent average-which was the previous record low. Last year at this time, the 5-year ARM averaged
A 1-year ARM: averaged 2.97 percent this week, down from last week's 2.99 percent. Ayear ago at this time, the 1-year ARM averaged 3.80 percent.
How long will Rates Stay Low? No one can predict the future
The 30-year fixed-rate mortgage, the most popular choice among home buyers, has been hovering around 4.5 percent for the last four weeks. However, Nothaft expect the rate to soon edge slightly higher. Rates can be close to or at 5% soon.
The General expectation for the second half of the year is to see rates fluctuate between 4.5 percent and 5 percent.
If you are looking to Buy or Sell do not wait for rates to drop. With Rates at 4.5% to 5% there is not much difference in payments. Payments are low now and if you have to move, Sell and if you want to buy? Do it now.
Rates may be low but the restraints to qualify for that low rate are going up fast.