While mortgage rates were recently at an all-time low, it seems as if they are on the rise yet again. For the second consecutive week, mortgage rates have risen and now the average 30-year loan is resting at 3.1 percent. When mortgage rates drop, many homebuyers are more willing to jump in the waters and buy. This also boosts the construction industry as well. With news of rising mortgage rates, however, many people can get intimidated and back out of home buying.
Freddie Mac released this information this morning, stating that the current mortgage rates are following U.S. Treasury bond yields which indicate signs of a strengthened economy. Good news for home buyers (and everyone else). Recent trends seem to indicate that investors are still optimistic about the market and are continuing to put their funds in stocks.
Freddie Mac also released information that the average rate for a 15 year fixed home loan rose to 2.69 percent up from 2.56 percent just two weeks ago. 15 year fixed loans are popular with homeowners who wish to refinance their current mortgages.
Those who have enough to make large down payments may be in luck in this upward swing. Unfortunately, many homeowner hopefuls who can only afford to make small down payments may be denied. One mortgage broker stated to the Los Angeles Times that “It’s just awful for low-down-payment buyers. They can’t get their offers accepted and they just keep chasing the prices higher and higher every day.”
Mortgage rates are constantly fluctuating, as this recent report gives testament to. If you are in the market to purchase or refinance a home, please look through Best Mortgage Rates, Inc. We allow you to search and compare mortgage rates across the nation from hundreds of lenders. Comparing mortgage rates before locking in is a great way to save!