Mortgage Rates Rise: Time to Get Serious, Buyers

After 6 straight weeks of improvement, mortgage rates finally moved higher this week.

Freddie Mac reports that the average 30-year fixed rate mortgage rate rose 4 ticks to 3.71% this week. Last week, the average 30-year fixed rate mortgage registered 3.67%.

Note that not everyone will get the “average” Freddie Mac mortgage rate. The published 3.71% mortgage rate is for conforming mortgage applicants only, and to get access to the rate, you’ll be asked to pay an accompanying, one-time closing cost of 0.7 discount points, plus a full set of closing costs.

This can add significant costs to your refinance because 1 discount point is equal to 1 percent of your loan size, and closing costs can be quite high, too, depending on where you live. In Texas, New York and California, for example, closing costs can exceed 1.5% of your loan size.

Freddie Mac’s weekly mortgage rate survey showed :

  • 30-year fixed rate mortgage : 3.71% with 0.7 discount points
  • 15-year fixed rate mortgage : 2.98% with 0.7 discount points
  • 5-year adjustable rate mortgage : 2.80% with 0.6 discount points

The Freddie Mac mortgage rate survey does not differentiate between a purchase money mortgage and a refinance. You may find that your lender offers slightly lower-than-average rates for a purchase, and slightly higher-than-average for “special” refinance types including the HARP refinance program.

Additionally, mortgage rates for the FHA Streamline Refinance may be higher or lower, too.

http://themortgagereports.com/10058/mortgage-rates-rise-to-3-71-6-week-winning-streak-ends

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Realtor with Greg Garrett Realty, actively licensed in the state of Virginia

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