Jessie Roberts/Unsplash
Multiple key mortgage rates cruised higher today. The average rates on 30-year fixed and 15-year fixed mortgages both floated higher. On the variable-mortgage side, the average rate on 5/1 adjustable-rate mortgages also advanced.
Mortgage rates are constantly changing, but they remain much lower overall than they were before the Great Recession. If you’re in the market for a mortgage, it may make sense to go ahead and lock if you see a rate you like. Just be sure to shop around.
Compare mortgage rates in your area now.
30-year fixed mortgages
The average rate for the benchmark 30-year fixed mortgage is 3.41 percent, an increase of 1 basis point over the last seven days. Last month on the 18th, the average rate on a 30-year fixed mortgage was higher, at 3.54 percent.
At the current average rate, you’ll pay a combined $444.04 per month in principal and interest for every $100,000 you borrow. That’s an additional $0.56 per $100,000 compared to last week.
You can use Bankrate’s mortgage payment calculator to estimate your monthly payments and see how much you’ll save by adding extra payments. It will also help you calculate how much interest you’ll pay over the life of the loan.
15-year fixed mortgages
The average 15-year fixed-mortgage rate is 2.86 percent, up 3 basis points since the same time last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $684 per $100,000 borrowed. That may put more pressure on your monthly budget than a 30-year mortgage would, but it comes with some big advantages: You’ll save thousands of dollars over the life of the loan in total interest paid and build equity much more rapidly.
5/1 ARMs
The average rate on a 5/1 adjustable rate mortgageis 3.18 percent, up 1 basis point over the last 7 days.
These types of loans are best for people who expect to sell or refinance before the first or second adjustment. Rates could be much higher when the loan first adjusts, and thereafter.
Monthly payments on a 5/1 ARM at 3.18 percent would cost about $431 for each $100,000 borrowed over the initial five years, but could ratchet higher by hundreds of dollars afterward, depending on the loan’s terms.
Where rates are headed
To see where Bankrate’s panel of experts expect rates to go from here, check out our Mortgage rate predictions for this week.
Want to see where rates are at this moment? Lenders nationwide respond to Bankrate’s weekday mortgage rates survey to bring you the most current rates available. Here you can see the latest marketplace average rates for a wide variety of purchase loans:
Rates accurate as of June 18, 2020.
Should you lock a mortgage rate?
A rate lock guarantees your interest rate for a specified period of time. Lenders often offer 30-day rate locks for a nominal fee or roll the price of the lock into your loan. Some lenders will lock rates for longer periods, sometimes for more than 60 days, but those locks can be pricey. In today’s volatile market, some lenders will lock an interest rate for only two weeks because they don’t want to take on unnecessary risk.
With a rate lock, if interest rates rise, you’re locked into the guaranteed rate. Some lenders have a floating-rate lock option, which allows you to get a lower rate if interest rates fall before you close your loan. In a falling rate environment, a float-down lock could be worth the cost. Because mortgage rates are not predictable, there’s no guarantee that rates will stay where they are from week to week or even day to day. So, if you can lock in a low rate, then you should do so rather than gamble on interest rates falling even lower.
Keep in mind that during the pandemic, all aspects of real estate and mortgage closings are taking much longer than usual. Expect the closing on a new mortgage to take at least 60 days, and expect refinancing to take at least a month..
Why do mortgage rates move up and down?
A number of economic factors influence mortgage rates. Among them are inflation and unemployment. Higher inflation typically leads to higher mortgage rates. The opposite is also true; when inflation is low, mortgage rates typically are as well. As inflation increases, the dollar loses value. That drives investors away from mortgage-backed securities (MBS), which causes the prices to decrease and yields to increase. When yields move higher, rates become more expensive for borrowers.
Generally speaking, when the economy is strong, more people buy homes. That drives demand for mortgages. Increased demand for mortgages can cause rates to increase. The opposite is also true; less demand can lead to lower rates.
Mortgage rate snapshot
The current mortgage rate environment has been unstable because of the coronavirus pandemic, but generally rates have been low. For a while, some lenders were increasing rates because they were struggling to deal with the demand. In general, however, rates are consistently below 4 percent and even dipping into the mid to low 3s. This is an especially good time for people with good to excellent credit to lock in a low rate for a purchase loan. However, lenders are also raising credit standards for borrowers and demanding higher down payments as they try to dampen their risks.
Methodology: The rates you see above are Bankrate.com Site Averages. These calculations are run after the close of the previous business day and include rates and/or yields we have collected that day for a specific banking product. Bankrate.com site averages tend to be volatile — they help consumers see the movement of rates day to day. The institutions included in the “Bankrate.com Site Average” tables will be different from one day to the next, depending on which institutions’ rates we gather on a particular day for presentation on the site.
To learn more about the different rate averages Bankrate publishes, see “Understanding Bankrate’s on-site rate averages.”
Shopping for the right mortgage lender? Check out Bankrate’s mortgage lender reviews.
"current" - Google News
June 18, 2020 at 06:39PM
https://ift.tt/2YJUMgc
Current Mortgage Rates, June 18, 2020 | Rates trend upward - Bankrate.com
"current" - Google News
https://ift.tt/3b2HZto
https://ift.tt/3c3RoCk
Bagikan Berita Ini
0 Response to "Current Mortgage Rates, June 18, 2020 | Rates trend upward - Bankrate.com"
Post a Comment