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10th May
written by admin

Mortgage interest rates in 2015:

If you are like me, you are kicking yourself a little for not taking action when mortgage interest rates recently hit near-historic lows. Through the 2014 calendar year, mortgage interest rates hovered near all time lows and the federal government seemed content on keeping the rates near record lows. This year however, interest rates have started to bounce back up again and many are wondering if the rise is going to stop or reverse.

Mortgage interest rates have bounced around a little given the economic news in recent months but on average, national mortgage rates have been ticking higher this year. Record highs for the year were set in early March.

Once again, rates moved above March levels this month. Mortgage interest rates will likely move higher still in the coming week. The ADP employment data that recently posted, prior to the monthly jobs report, had people feeling a bit anxious and these feelings have a way of holding rates lower. Anxieties were washed away though once the monthly jobs report posted. The U.S. Bureau of Labor Statistics showed that the economy created 223,000 jobs in April and the unemployment rate fell lower to 5.4 percent from 5.5 percent the month prior. The report represented good news and it was a positive sign for the U.S. economy moving forward this year.

As the U.S. economy continues to show that it is in recovery mode, analysts predict that interest rates should steadily rise as well. According to Freddie Mac, the most recent posting of standard mortgage interest rates revealed that rates continue to notch higher.

Freddie Mac Mortgage Interest Rates Today:
Freddie Mac posted that the mortgage interest rate for the average 30 year loan moved higher from 3.68 percent to 3.8 percent. The interest rate for the standard 15 year plan moved higher from 2.94 percent to 3.02 percent. Although mortgage interest rates are still low by historic standards, the rise has many throwing some caution to the wind. Every point higher equals a diminished return on a refinance.

Mortgage refinance:

If you are like me, you might have missed the boat on the potential for a positive mortgage refinance outcome. My current rates are relatively low and so a refinance now might not be in the cards. Every lender has an analyst that can run the numbers for you to help you determine if a refinance might be a good option. Keep in mind though that you will likely need several thousand dollars for closing costs in order to get the job done. Although our economy continues to improve, many people still just don’t have the closing cost dollars. Contact your local analyst to see if mortgage rates in your area are low enough for a positive lending or refinance outcome.

Stephen Johnson