[ad_1]
Mortgage rates are mixed this week – some on the rise, others down – but you see the real story when you compare the current rates to what they were a year ago.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Mortgage rates of the day are almost a full lower percentage point. This means that borrowers are making huge savings compared to that time, not so long ago, when Drake was at the top of the charts with "In My Feelings" ("Kiki, do you like it? …") and Crazy Rich Asians data-reactid = "32"> Current mortgage rates are almost one percentage point lower. This means that borrowers are making huge savings compared to the time when Drake was at the top of the rankings with "In My Sentiments" ("Kiki, do you like it? …") and Crazy Rich Asians still played in theaters.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "If you see a good rate and look for a house or are ready to refinance, you may want to lock this rate now. "data-reactid =" 33 "> If you see a good rate and are looking for a house or are ready to refinance, you may want to lock this rate now.
This week's figures
Homeowners who refinance find that they can save about $ 140 a month on average.
"data-reactid =" 51 ">
Andrey_Popov / Shutterstock
Homeowners who refinance find that they can save about $ 140 a month on average.
<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The average rate over a fixed period of 30 years – the mortgage rate rose this week to 3.58%, after 3.55% last week, says mortgage giant Freddie Mac. "Data-reactid =" 55 "> The average rate of a 30-year fixed rate mortgage has increased this week from 3.55% to 3.58% this week, says mortgage giant Freddie Mac.
The loans of the survey have an average of 0.5 point.
A year ago, the benchmark mortgage rate was much higher, averaging 4.52%.
Rates have fallen so much that it could be worth refinancing an existing home loan, even if it 's only a year old. Freddie Mac recently said that homeowners who refinanced in the spring of this year are saving an average of $ 1,700 a year, or about $ 140 a month.
Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Requests for refinancing fell 8% last week , said the Mortgage Bankers Association. Mortgage applications declined overall by 6.2%. "Data-reactid =" 59 "> Requests for refinancing fell 8% last week, the Mortgage Bankers Association said.
Why rates do what they do
The 30-year mortgage rates are down about one percentage point from a year ago.
"data-reactid =" 77 ">
Andrii Yalanskyi / Shutterstock
The 30-year mortgage rates are down about one percentage point from a year ago.
The borrowers have entered into serious mortgage deals this summer, says Sam Khater, Freddie Mac's chief economist.
"Mortgage rates edged up this week, closing the month with an average 30-year fixed rate mortgage rate of 3.6%, almost one percent over the same period last year. ", did he declare.
Due to what Freddie Mac calls "a huge downward pressure on long-term interest rates around the world," his new forecast predicts that mortgage rates will remain unchanged – at around 3.6% on average – while the first half of the year. 2020.
This will strengthen the economy in general, says Khater.
"Low mortgage rates and the strength of the labor market are fueling the consumer-driven economy by increasing their buying power," he said, "which will certainly support the economy's activity. housing market in the coming months ".
Housing prices are expected to rise 3.4% this year, according to Freddie Mac's forecast.
Other mortgage rates this week
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Mortgage rate of 15 years – which are popular among the refinanced consumers – rose on average by 3.06%, against 3.03% last week. "Data-reactid =" 88 "> The 15-year mortgage rates – which are appreciated by consumers who refinance – have increased on average 3.06%, compared to 3.03% last week.
A year ago, short-term home loans averaged 3.97 percent, according to Freddie Mac.
But rates continue to fall on 5-1 adjustable rate mortgages, or MRAs, which are up for five years and can then "adjust" up (or down) each year .
These MRAs are currently offered at an initial average rate of 3.31%, down from 3.32% last week. Last year at this time, start-up rates averaged 3.85%.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "When you apply for a mortgage, you need down payment, money. a savings account at a great price, and start putting that money away. "data-reactid =" 96 "> When you apply for a mortgage, you need a down payment, find a savings account at a great rate, and start putting it aside.
<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Do you want more MoneyWise? Sign up for our free newsletter."data-reactid =" 97 "> Want more money? Sign up for our free newsletter.
[ad_2]
Source link