The average rate for a 30-year fixed loan has increased for the third week in a row, according to Bankrate’s most recent survey of mortgage lenders across the nation. The current rate currently stands at 3.93%, up from last week’s average of 3.87%.
While mortgage rates may continue to fluctuate or increase slightly in upcoming months, experts are quick to point out that they are not expected to greatly increase a buyer’s monthly payment. Additionally, the Federal Reserve met on Wednesday and declined to increase the Federal Funds Rate. As a result, mortgage rates, which are indirectly tied to this Federal Funds Rate, are likely to hover around 4% for the remainder of the season.
Last year at this time, the average rate was 3.91%. By contrast, the average rate in March 2006 was 6.32% and as high as 8.24% in March 2000!