Last week (ending February, 21st, 2014) marks the second consecutive week that mortgage interest rates have incrementally increased.
The Federal Reserve has been stimulating the mortgage economy by pumping $85 billion on it per month in order to help keep mortgage rates low and encourage people to buy. In most recent news, the Federal Reserve has planned to cut back on the program, and has indicated that there is ‘little possibility’ of the wind-down of the plan to be hindered, which means that interest rates will most likely go up in the near future. Some have noted that the 2014 decline in mortgage rates has come to an end. However, as mortgage rates rise, they are expected to rise steadily. Bear in mind that any dips in mortgage rates should be identified as an opportunity to lock in a loan rate that may be hard to come by for the remainder of 2014.
Freddie Mac released a report that the 30-year fixed mortgage averaged 4.33% last week. See the rates below to explore the comparisons between the past few weeks and the same time last year.
30-year fixed rate mortgages: last week’s average was 4.33%, which has increased from the prior week’s 4.28%
- Last year around the same time, 30-year rates averaged 3.56%
15-year fixed rate mortgages: last week’s average was 3.35%, which has increased from the prior week’s 3.33%
- Last year around the same time, 15-year rates averaged 2.77%
5-year hybrid adjustable-rate mortgages (ARMs): last week’s average was 3.08%, which has increased from the prior week’s 3.05%
- Last year around the same time, 5-year ARMs averaged 2.64%
1-year ARMs: last week’s average was 2.57%, which has increased from the prior week’s 2.55% average.
- Last year around the same time, 1-year ARMs averaged 2.65%
Source: Freddie Mac
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