Mortgage Rates Rise for Another Week Two weeks ago mortgage rates rose following weeks of declines. Last week, this trend continued, according to Bankrates weekly national survey. Bankrate said that the benchmark 30-year fixed mortgage rate rose from 4.32% to 4.34% last week, while the average 15-year fixed mortgage rate moved from 3.41% to 3.43%. The 5/1 ARM rose to 3.37%, from 3.31% the week before. Mortgage rates are still down for the year: at the end of 2013 the 30-year fixed stool at 4.69%. Bankrate points out that the monthly payment on a $200,000 loan is around $42 cheaper, at $994.45, than it was in December 2013. Good things have come to those who waited. Experts do, however, predict a rising rate environment for mortgages. The economy is gaining steam -- which has the affect of putting upward pressure on rates. Also, the Fed’s “taper” policy means that it won’t be buying as many mortgage related securities as the year winds on. This, too, puts upward pressure on mortgage rates. If the experts are correct, we might see fixed 30-year mortgage rates above 5% this year. Major reversals in either the health of the economy or Fed policy would change that trajectory, of course. But most would agree that slightly more expensive mortgages would be a small price to pay for having a strong economy throughout the year. Copyright Today’s Credit Unions Link: bankrate #MortgageRates
Posted on: Mon, 16 Jun 2014 19:00:01 +0000
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