WASHINGTON — Long-term U.S. mortgage rates rose this week, continuing at their highest levels in seven years amid the peak home buying season. Mortgage buyer Freddie Mac said Thursday the average rate on 30-year, fixed-rate mortgages was 4.66 percent, up from 4.61 percent last week. Pushing toward the significant 5 percent level, the new average benchmark rate was the highest since May 5, 2011. By contrast, the 30-year rate averaged 3.95 percent a year ago. The average rate on 15-year, fixed-rate loans increased to 4.15 percent from 4.08 percent last week. To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. The fees on 30-year and 15-year fixed-rate mortgages were both unchanged at 0.4 percent. The average rate for five-year adjustable-rate mortgages rose to 3.87 percent from 3.82 percent last week. … [Read more...] about U.S. average mortgage rates at 7-year highs
7 year adjustable rate mortgage
WASHINGTON — Long-term U.S. mortgage rates jumped this week, marking their highest levels in seven years amid the peak home buying season. The benchmark 30-year rate pushed toward the significant 5 percent level. Mortgage buyer Freddie Mac said Thursday the average rate on 30-year, fixed-rate mortgages was 4.61 percent, up from 4.55 percent last week. The new average rate was the highest since May 19, 2011. By contrast, the 30-year rate averaged 4.02 percent a year ago. The average rate on 15-year, fixed-rate loans climbed to 4.08 percent from 4.01 percent last week. The latest indications of a strong economy and rising commodity prices — gasoline is at a four-year high — lifted yields on bonds and mortgage rates followed suit. U.S. retail sales rose at a solid pace in April, according to a government report issued Tuesday, a sign that consumers may be rebounding from weak spending earlier this year and driving stronger economic growth. Consumer spending has rebounded … [Read more...] about U.S. average mortgage rates at 7-year highs; 30-year 4.61 pct.
By Jeff Lazerson | [email protected] | MortgageGrader.com PUBLISHED: May 3, 2018 at 12:42 pm | UPDATED: May 3, 2018 at 12:42 pm What’s up with mortgage rates? Jeff Lazerson of Mortgage Grader in Laguna Niguel gives us his take. Rate news summary From Freddie Mac’s weekly survey: The 30-year fixed rate averaged 4.55 percent, 3 gratifying basis points down (and hopefully a momentum changer) from last week’s 4.58 percent. The 15-year fixed averaged 4.03 percent, 1 basis point higher than last week’s 4.02 percent. The Mortgage Bankers Association reported a 2.5 percent decrease in loan application volume from the previous week. Bottom line: Assuming a borrower gets the average 30-year fixed rate on a $453,100 conforming loan, last year’s rate of 4.03 percent and payment of $2,171 was $146 less than this week’s payment of $2,317. What I see: Locally, well-qualified borrowers can get the following adjustable-rate mortgages at a one-point … [Read more...] about Fannie and Freddie impeding more affordable adjustable-rate mortgages
Last Updated May 31, 2011 9:06 AM EDT They're back. Sort of. After all but disappearing when the real estate bubble burst, adjustable rate mortgages (ARMS) are staging a comeback. Falling to about one percent of all mortgage applications in 2009, adjustable rate mortgages now account for about six percent of the market, and just this past weekend The Wall Street Journal weighed in with a piece titled Home Loans: A Call to ARMS? that led with the news that "Adjustable-rate mortgages, out of favor for years, are looking like a deal." From my vantage point, though, they look like the wrong kind of deal. The Case Against Adjustable Rate Mortgages There's a much better alternative. A 30-year fixed rate mortgage these days comes with a super low 4.7 percent interest rate. That in itself is plenty of reason to forget about an adjustable mortgage. To be able to lock in absolutely no future rate risk at such an affordable rate is a really good deal. Yes, I know that a 5-year ARM is an even … [Read more...] about Why Adjustable Rate Mortgages Are Still a Really Bad Idea
Last Updated Jul 21, 2009 8:08 PM EDT Dear Ali; I'm applying for an adjustable rate mortgage, and I was told that "the caps are 5/2/5." What does that mean? A: Welcome to the wonderful world of adjustable-rate mortgages! Despite some scary things you may have read, ARMs, as they are known, aren't bad for everyone. (I wrote a marketing piece about this once for Citibank, but my money's where my mouth is: I have two.) However, as with any loan, you do need to understand the terms on which you're borrowing. The easy part is that an ARM has a set number of years for which it's fixed and then a frequency with which it resets: A "5/1" is fixed for 5 years, and then resets every year after that; a "7/1" is fixed for 7 years, and then resets -- you've got it -- every year. The tougher thing is to understand what the limits on the resets are. Most ARMs, contrary to popular portrayal, can't reset immediately from zero to 60 -- they work within limits or "caps." That's what those three numbers … [Read more...] about Demystifying Adjustable-Rate Mortgages