30 Year Mortgage Rates Rise
04/16/2007

Average rates on 30 yr mortgage loans rose last week to an average of 6.22%, according to a weekly survey released by government backed finance company Freddie Mac. This rise comes after a period where rates were moving downwards. Rates are up .06% from last week.

15 Yr home mortgage rates also rose and they now stand at 5.90% up from 5.87%. 1 Yr ARMS are averaging 5.47%, up from 5.44% last week.

Despite these increases, the costs of mortgages are still running well below the levels of a year ago when 30 Yr mortgages were averaging 6.49%, 15 Yr mortgages were at 6.14% and the 1 Yr ARM was at 5.61%.

While mortgages rates are creeping up, The National Association of Realtors are reporting that house prices are on their way down. They report that the median price of an existing home will fall 0.7% this year to $220,330.

Frank Nothaft, VP of Freddie Mac and chief economists stated that the mortgage rate rise was related to stronger job growth data which the markets had not anticipated. He also added that mortgage refinancing activity is still loking strong and now accounts for 40% of total mortgage applications.

“Among those choosing to refinance now, a large share are doing so to avoid an adjustment to their monthly payment as the initial period on their adjustable-rate loan expires or to extract home equity through a cash-out refi,” he said.

Many people are now beginning to take action as their adjustable rate mortgages are coming to the end of their terms. With many people facing increases to their monthly payments, mortgage refinancing is the best way of keeping control of their finances. Although it can seem a bit daunting, refinancing is the most sensible approach and homeowners should ensure they get the best advice and do their research.

With house prices coming down, a lot of inventory to choose from and mortgage rates still lower than a year ago, this is a very good time for buyers. There are definitely some good deals to be had.

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