Home Mortgages: Should You Apply Now?

If you’re thought about applying for a new mortgage or refinancing your current mortgage, you might desire to take action now.

In its study this hebdomad (the hebdomad of Aug. 1), Freddie Mac, the corporation that finances many of the country’s mortgages, reported that rates on 30-year, fixed-rate mortgages rose to a nationwide average of 5.82 percent. This stands for the 5th hebdomad in a row that the rate on fixed-rate mortgages have gone up. This addition set the rate is at its highest since it averaged 5.91 percent for the hebdomad ending April 14.

That’s the not-so-good news. The good intelligence is that rates on 30-year mortgages are still sensible and have, in fact, stayed below 6 percent for all but two hebdomads this year.

This, of course, would be for a new mortgage. If you are thinking of refinancing your current mortgage, you might desire to look into a 15-year, fixed rate mortgage. The rates on these mortgages averaged 5.38 percent this week. This compares with an interest rate average of 5.34 percent last week.

Frank Nothaft, Freddie Mac's head economist, have said that "Long-term mortgage rates will more than likely rise over the adjacent few months.”

Also, the Federal Soldier Modesty is expected to go on to increase a cardinal short-term interest rate. It have increased this rate 10 modern times since it began to fasten credit in June of 2004 and is expected to go on to increase this rate.

Keep in head that the nationwide interest rate averages quoted here make not include add-on fees known as points. Both 30-year and 15-year fixed-rate mortgages currently carry an average fee of 0.6 point

Last twelvemonth at this time, 30-year mortgages had an average interest rate of 5.99 percent and 15-year mortgages were at 5.40 percent. This agency that right now, your interest rate on a new mortgage would probably be slightly less than a twelvemonth ago.

So, if you need a new mortgage or desire to refinance your existent mortgage, now could be a pretty good time.