After Steady Decline, ‘Mortgage Rates Rise’

Mortgage rates increased this week for the first time in more than a month, but they still remain near their yearly lows.

Freddie Mac reports the following national averages for the week ending June 15:

  • 30-year fixed-rate mortgages: averaged 3.91 percent, with an average 0.5 point, rising from last week’s 3.89 percent average. Last year at this time, 30-year rates averaged 3.54 percent.
  • 15-year fixed-rate mortgages: averaged 3.18 percent, with an average 0.5 point, increasing from last week’s 3.16 percent average. A year ago, 15-year rates averaged 2.81 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.15 percent, with an average 0.5 point, rising from last week’s 3.11 percent average. A year ago, 5-year ARMs averaged 2.74 percent.

Source: Freddie Mac

Mortgage Rates Rise Across the Board

Fixed-rate mortgages rose this week across the board, increasing borrowing costs for home buyers, Freddie Mac reports in its weekly mortgage market survey.

The mortgage giant reports the following national averages with mortgage rates for the past week:

  • 30-year fixed-rate mortgages: averaged 4.33 percent, with an average 0.6 point, rising from last week’s 4.27 percent average. Last year at this time, 30-year rates averaged 3.40 percent.
  • 15-year fixed-rate mortgages: averaged 3.39 percent, with an average 0.6 point, increasing from last week’s 3.33 percent average. A year ago at this time, 15-year rates averaged 2.61 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.03 percent, with an average 0.5 point, holding the same average as last week. A year ago, 5-year ARMs averaged 2.58 percent.
  • 1-year ARMs: averaged 2.44 percent, with an average 0.5 point, holding the same as last week. A year ago, 1-year ARMs averaged 2.62 percent.

Source: Freddie Mac

Mortgage ‘Rates Rise’ for First Time in 5 Weeks!

Mortgage rates were on the rise slightly this week, following more than a month of declines after the Federal Reserve announced it would delay tapering its $85 billion per month bond purchasing program.

Freddie Mac reports the following  mortgae rates for the week ending Oct. 10, 2013:

  • 30-year fixed-rate mortgages: averaged 4.23 percent, with an average 0.7 point, rising from last week’s 4.22 percent average. Last year at this time, 30-year rates averaged 3.39 percent.
  • 15-year fixed-rate mortgages: averaged 3.31 percent, with an average 0.7 point, rising from last week’s 3.29 percent average. Last year at this time, 15-year rates averaged 2.70 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.05 percent, with an average 0.4 point, rising from last week’s 3.03 percent average. Last year at this time, 5-year ARMs averaged 2.73 percent.

Source: Freddie Mac

Bigger Mortgage Rates, Smaller Homes?

As the costs of mortgages get bigger, could the size of homes purchased get smaller?

According to financial Web site The Motley Fool, interest rates and home size are closely tied together. “As interest rates fell in the late 1970s, home sizes grew,” Motley Fool reports. “As rates rocketed in the early 1980s, home sizes contracted. After reaching a peak in the 1980s, mortgage rates have fallen precipitously, and homes have grown in almost every single year since.”

That’s because as mortgage rates rise — as they are now — buyers can afford less. Mortgages at a 5.5 percent annual rate are 12 percent more expensive than at a 4.5 percent rate, Motley Fool notes. If rates climbed up to 6.5 percent — where they were about six years ago — monthly mortgage payments would be nearly 25 percent more costly than a 4.5 percent mortgage rate.

In 1975, the average home built was 1,535 square feet. In 2010, that grew to 2,169 square feet, according to U.S. Census data.

As mortgage rates rise again, buyers who are priced out may be able to still jump in by purchasing a smaller home, according to Motley Fool. Home buyers may be lured to smaller homes constructed 30 or 40 years ago, which could require some remodeling.

Source: “Higher Mortgage Rates Could Revitalize Smaller Home Sales,” The  Motley Fool (Sept. 2, 2013)