Fixed rate mortgages steady, Adjustable Rate’s fall
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Bankrate.com reported today that Fixed rate mortage were mostly unchanged this week. The average conforming 30-year fixed mortgage rate backtracked to 6.13 percent, according to their weekly national survey of large lenders. The average 15-year fixed rate mortgage popular for refinancing was unchanged at 5.71 percent, while the average jumbo 30-year fixed rate remains 7.35 percent.
Adjustable mortgage rates retreated, with the average 5/1 ARM retreating to 5.87 percent and the average 7/1 ARM falling to 6.09 percent. Even though adjustable mortgage rates pulled back this week while fixed rates held steady, the value for borrowers remains in fixed rate mortgages.
The average 30- year fixed mortgage rate is 6.13 percent, compared to the 7/1 ARM at 6.09 percent. That is a negligible difference considering the 30-year fixed rate offers the guarantee that the rate will never change. As a general note to home buyers, Adjustable rate mortgages should not be used as a shortcut to affordability!
For a full analysis of this week’s move in mortgage rates, go to http://www.bankrate.com/mortgagerates.
