Mortgage Rates

Mortgage Rates Experience Slight Bumps

By: Jorge Lopez, March 4, 2016

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.

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