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Current Mortgage Interest Rates

May 25, 2016 / in Interest Rates, Mortgage News, This Week in Rates / by Thomas Short

Mortgage interest rates change daily. Keep up with current rates to make the best decision on your home mortgage.

CURRENT MORTGAGE

INTEREST RATES

Mortgage
Rates
Reported

30-Year

Fixed*

15-year

Fixed*

5/1 ARM*

5/19/16

3.58↑

2.81%↔

2.80%↑

5/12/16

3.57%

2.81%

2.78%

5/5/16

3.61%

2.86%

2.80%

4/28/16

3.66%

2.89%

2.86%

4/21/16

3.59%

2.85%

2.81%

4/14/16

3.58%

2.86%

2.84%

*Average rates from a lender survey of 100+ lenders as reported by Freddie Mac PMMS. Fees and points vary. These are average rates only and intended to give a snapshot of overall market movements, not specifically available rates. For a personalized rate quote click here.

Mortgage Rates Remain Near Low Levels

Mortgage rates rose slightly last week. However, they are still near the lowest levels of the past three years.

The 30-year conventional fixed rate increased to 3.58%, a rise of just one basis point (0.01%).

>>Click to see current mortgage rates.

Mortgages rates two weeks ago reached the lowest levels in three years. They’ve been near these low levels for throughout April and May.

Wall Street had expected mortgage rates to increase gradually throughout 2016. Now, they are expected to remain low through May and possibly June or July.

The lower the rates are, the more affordable home buying becomes. The biggest problem in the current housing market is that there are not enough homes available to buyers. But more homes will become available as the year goes on.

Those looking to capitalize on low rates should consider getting pre-qualified. This way they can learn what low rates are available to them if they were to begin the home buying process today.

Click here to see available rates.

Freddie Mac Reports Current Rates

Each week, Freddie Mac surveys over 100 lenders to determine a nationwide rate average. Because their rate is a national average, there is a chance that rates available to you are even lower than those reported.

Freddie Mac reported that the 30-year fixed rate mortgage rose slightly to 3.58%. While this is an increase from the previous week’s reported rates, the current rate is the lowest available from January through April.

The 30-year rate rose so slightly that it may not even affect many home buyers.

Freddie Mac also reports the average rates for the 15-year fixed rate mortgage and the five-year adjustable rate mortgage (ARM).

The 15-year fixed rate remained at 2.81%, its rate from the previous week. This ties the lowest levels the 15-year has been at in the past three years.

While a 15-year fixed rate mortgage is not the most popular option, there are clear benefits to selecting it. Even though monthly payments will be higher than on a 30-year mortgage, the mortgage rates you get will be lower than rates available on a 30-year mortgage.

Also, the life of the loan is only half that of a 30-year mortgage. Individual home buyers will find an advantage to selecting a 15-year or 30-year mortgage of the other.

Like the 30-year rate, the five-year ARM rose slightly last week to 2.80%. This is an increase of only two basis points (0.02%) from the previous week.

Rates are near record lows for all three reported rates. However, Freddie Mac’s reported rates are all averages. Your rates on the 30-year fixed rate, 15-year fixed rate and five-year ARM could be lower than Freddie Mac’s rates.

Click to check current mortgage rates.

Your Mortgage Strategy

The main story with the U.S. economy has been that the housing market is the strongest sector. High buyer demand, low mortgage rates and rising home costs have lead to a very profitable market.

Rising home prices have been a bit of a concern for many potential home buyers. Prices are rising at a quick clip, and many buyers are worried that homes are no longer affordable.

However, there is a good chance that reductions in the rate have more than offset any increase in home prices throughout the year. This means that buying a home at the beginning of 2016 would be more expensive than it is today.

As the U.S. economy gains steam, there is a good chance that mortgage rates will begin to increase back to more normal levels. Those who are planning on buying a home in the near future may want to act sooner than later.

Current Rates

Freddie Mac reports their national rate average every week. However, rates change each day, and they can fluctuate by large amounts during the day.

Rates today could be higher or lower than they were yesterday. Either way, rates are at ultra-low levels. There may not be a wrong time to lock into your available rates.

Click to see current mortgage rates.