Mortgage rates have been on quite the rollercoaster ride in the past two months, getting extremely high, going back down a little and then just staying in place for a little while, too. However, on Monday, they were on the rise again.
The average for the 30-year fixed rate and the 15-year fixed rate both saw a rise in rates. The 5/1 adjustable-rate mortgage, or ARM, also saw an increase. Considering last week’s decline in rates and now this week’s increase, the two have almost evened each other out. The rates we are seeing now, after this week’s increase, are almost the same rates that we saw at the beginning of last week before rates began to drop.
30-year fixed rate
The average 30-year is now 4.09 percent. This percentage is up 6 basis points just over the last seven days. The 30-year is up even more than that from a month ago, it was even lower at 3.98 percent.
15-year fixed rate
Right now, the average 15-year fixed rate is up 7 basis points over the last week. The average right now for a 15-year fixed rate is up to 3.25 percent.
The payment amounts on a 15-year right now would be much higher, at about a monthly payment of $703 per $100,000 borrowed. There are benefits to this option though – you will save thousands over the life of the loan by cutting your typical payback time in half.
The average for the ARM has risen the most basis points in the last week out of the three. The ARM is up 13 basis points from last the last week, making the average rate for it 3.42 percent.
For example, on a 5/1 ARM, you will pay around $445 for each $100,000 borrowed. However, that rate could change after five years and your payment could go up. This option is best for borrowers who are planning to sell or refinance their home within the next few years.
What does this week look like?
According to bankrate.com, 18.1 percent of panelists surveyed said they expect the mortgage rates to increase over the next week or so. Out of the remaining panelists, 36.4 percent said they predict that rates will fall, while 45.5 percent said they predict that rates will remain relatively unchanged over the next week or so.
Last week 54.5 percent of panelists that predicted that rates would remain relatively unchanged were correct.