Mortgage rates haven’t been this high since October 2014. Government mortgage giant Freddie Mac recently reported that the average 30-year fixed rate loan has climbed from 4.08% to 4.13% this week. These figures include an average of 0.5 points (a point is an upfront fee paid to the lender by the borrower to “buy down” the interest rate) – in other words, if you don’t purchase points, your rate may be a bit higher.
The average 5-year adjustable rate mortgage (ARM) also rose to 3.17%, and the 15-year fixed rate loan crawled up to 3.36%. A popular choice for refinancing homeowners, the increase for the 15-year fixed rate loan has caused mortgage applications around the country to plummet. As CNBC reports, the number of homeowners attempting to refinance is at the lowest level of the year.
If you’re in the process of shopping for a home and would like to be introduced to a friendly, knowledgeable and local lender, be sure to give us a call at (215) 699-5555.