As most first-time homebuyers know, mortgage rates play a critical role in determining what a prospective homeowner will be paying on a monthly basis for their home after they’ve made the down payment. The lower the rate, the less one will pay. These rates tend to fluctuate and differ based on whether a buyer intends to apply for 30-year fixed, a 15-year fixed, or perhaps an adjustable rate mortgage. Let’s take a look at some of the recent mortgage activity.
Mortgage rates saw a slight bump recently, yet they’re still lower than the levels homeowners normally would pay. In the week ending on March 3, the benchmark 30-year fixed rate mortgage was averaging about 3.64%, just slightly higher than the 3.62% per Freddie Mac. So far, mortgage rates have maintained a weekly average below four percent throughout 2016. Homeowners were paying an effective mortgage rate of 3.84% during the fourth quarter.
As for 15-year fixed rate mortgages, the rate was about 2.94%, a tiny increase from 2.93% according to Freddie Mac. The 5-year Treasury-indexed hybrid adjustable-rate mortgage saw a slightly bigger bump from an average of 2.79% to 2.84%.
Mortgage rates typically tend to reflect the current movements in the U.S. government bond market.
Will you be purchasing a home for the first time anytime soon? Make sure you’re aware of how mortgage rates work.
This real estate and financial update is brought to you by FreeValues.com, the number one provider of free home values on the web. We provide free house values as well as useful information for sellers.