Mortgage Interest Rates Spike to 6.46%
Mortgage interest rates for thirty year mortgage loans spiked this week, following a rise in long-term Treasury bonds yields. Mortgage Loan Company Freddie Mac reported Thursday that thirty year fixed-rate mortgages rose to 6.46%, which is up from 6.06% last week and above the 6.26% rate this time last year. The increase reverses a decline from 6.46 % two weeks ago. According to North Carolina mortgage broker Hayden McBride, “As the long as the rates for FHA home loans remain below 7%, we will be able to refinance people into fixed rate mortgages.”
Mortgage rates on fifteen year fixed-rate mortgages rose to 6.19% from 5.72% last week. A year ago, the rate was 5.91 %. Five-year adjustable-rate mortgage loans rose to 6.36%, from 6.06% last week. A year ago, the rate was 5.98%.The Federal Reserve Board on Wednesday reduced the federal funds rate what banks charge each other for overnight lending a half-point to 1%. Analysts say that is likely to keep short-term interest rates low, holding initial interest rates on ARMs near current levels.
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Keep sending me the strong financing blog posts. These article help my loan officers stay up to speed on what’s really going on in the mortgage business.