The average mortgage rates for different loan types experienced slight fluctuations, with some going up and others going down. However, the average jumbo rates remained unchanged.
The housing market has been experiencing a period of uncertainty due to the ongoing COVID-19 pandemic. As a result, mortgage rates have been fluctuating, with some borrowers taking advantage of the low rates to refinance their homes or purchase new properties.
According to data from Freddie Mac, the average rate for a 30-year fixed-rate mortgage increased slightly from 2.87% to 2.88% in the week ending on September 16, 2021. The average rate for a 15-year fixed-rate mortgage also increased from 2.17% to 2.19%.
On the other hand, the average rate for a 5/1 adjustable-rate mortgage (ARM) decreased from 2.44% to 2.42%. This type of mortgage has a fixed rate for the first five years before adjusting annually based on market conditions.
The slight increase in fixed-rate mortgages may be attributed to the recent rise in inflation and the Federal Reserve’s indication that it may start tapering its bond-buying program soon. However, the overall trend for mortgage rates remains low compared to historical averages.
Meanwhile, jumbo mortgage rates remained unchanged from the previous week. Jumbo mortgages are loans that exceed the conforming loan limits set by Fannie Mae and Freddie Mac, which are currently $548,250 for most areas in the United States.
According to Bankrate’s weekly survey, the average rate for a 30-year fixed-rate jumbo mortgage was 3.07%, while the average rate for a 15-year fixed-rate jumbo mortgage was 2.62%. These rates have remained steady for several weeks, indicating that lenders are not yet adjusting their rates for this type of loan.
Jumbo mortgages are typically used by high-income borrowers who need to finance expensive homes. These loans carry higher interest rates and stricter underwriting requirements compared to conforming loans, which can make them more difficult to obtain.
Overall, the current mortgage rates present an opportunity for borrowers to lock in low rates and save money on their monthly payments. However, borrowers should also consider their financial situation and long-term goals before deciding on a mortgage type and rate.
Factors such as credit score, debt-to-income ratio, and down payment amount can affect the interest rate and terms of a mortgage. Borrowers should also consider the length of the loan term and whether they plan to stay in the home for the long term.
In addition, borrowers should shop around and compare rates from multiple lenders to find the best deal. Online mortgage marketplaces and mortgage brokers can help borrowers compare rates and find lenders that offer favorable terms.
In conclusion, mortgage rates have been fluctuating slightly for different loan types, but jumbo rates have remained steady. Borrowers should take advantage of the low rates to save money on their monthly payments, but also consider their financial situation and long-term goals before choosing a mortgage type and rate. Shopping around and comparing rates from multiple lenders can help borrowers find the best deal.
