Mortgage Rates Hover Low

Mortgage-Information1People have been talking for quite a few months now about the possibility of mortgage rate increases.  As the mortgage rate goes up the price and size of the home you can afford comes down because you are paying more per month for the same money.  Good news at the moment is that the rate is staying stable and extremely low.  Now is definitely the time to consider the purchase of a new home or a second home.  Get locked into a rate while it is low and you might be surprised how much home you can afford!

Mortgage rates are largely unchanged and remaining near their low mark for 2016 at the start of the spring homebuying season, according to the recently released Freddie Mac Primary Mortgage Market Survey®.   According to the survey, the 30-year fixed-rate mortgage (FRM) averaged 3.59 percent with an average 0.6 point for the week ending April 21, 2016, up from last week when they averaged 3.58 percent. A year ago at this time, the 30-year FRM averaged 3.65 percent.

The 15-year FRM this week averaged 2.85 percent with an average 0.5 point, down from last week when it averaged 2.86 percent. A year ago at this time, the 15-year FRM averaged 2.92 percent.

Results show the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.81 percent this week with an average 0.5 point, down from last week when it averaged 2.84 percent. A year ago, the 5-year ARM averaged 2.84 percent.

“Volatility in financial markets subsided over the past week, allowing Treasury yields to stabilize,” says Sean Becketti, chief economist, Freddie Mac. “As a result, the 30-year mortgage rate was mostly flat, up only 1 basis point to 3.59 percent. The release of March’s existing-home sales report, which shows monthly growth at 5.1 percent, suggests homebuyers are taking advantage of low mortgage rates as the spring homebuying season gets underway.”

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Reprinted with permission from RISMedia. ©2016. All rights reserved.

Remember it is always toasty in Naples and you deserve your piece of Naples sunshine.  Call me for a referral to a great mortgage broker who will help you figure out exactly how much you can afford.

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