Completing a loan application is the first thing you’ll do when refinancing your mortgage. You may also need to provide a variety of documentation to help your mortgage lender approve you for a home loan. The documentation will vary depending on the lender you choose, your loan program, and your…
Greek philosopher Heraclitus once said “the only constant is change.” As much as we would like things to remain the same – our babies to stay little, our waistlines to stay small, our mortgage rates to remain low – they never do, nor will. No matter how hard we try to stop it, time just keeps on slippin (slippin, slippin) into the future*, and mortgage rates keep on climbing.
This week’s Primary Mortgage Market Survey is out and rates are both higher and lower than last week. It just goes to show how quickly these crazy low rates can change. If you’re not refinancing into a lower rate, you may miss out on your opportunity. There is never going to be a better time, because tomorrow never comes.
So take a look and see how your existing rate compares:
30-year fixed-rate mortgages were on the rise this week, reaching 3.37% with an average of 0.7 points. You may remember last week they averaged 3.32%. While the increase is slight, it’s still on the upward trend. Last year at this time, the 30-year fixed rate averaged 3.91%
15-year fixed-rate mortgages actually dropped this week to 2.65% with an average of 0.7 points, down from last week when it averaged 2.66%. That’s good news for you if you’re looking to refinance into a shorter term loan! Last year, the 15-year fixed rate averaged 3.21%
ARMs were a mixed bag again this week. The 5-year ARM averaged 2.71% with an average 0.7 points, up from last week when it averaged 2.70%. Meanwhile the 1-year ARM was at 2.52% this week with an average 0.4 points, down from last week when it averaged 2.53%. A year ago the 5-year ARM and the 1-year ARM averaged 2.85% and 2.77% respectively.
And now for the feature that doesn’t change, our weekly quote from Frank Nothaft, vice president and chief economist from Freddie Mac:
“Mortgage rates were mixed this week following data reports on stable inflation and a thriving home construction market. The 12-month growth in the core consumer price index has remained between 1.9 and 2.1 percent for the past five consecutive months ending in November. Meanwhile, housing starts averaged the strongest three months in November since September 2008, and homebuilder confidence rose in December to its highest reading since April 2008.”
*I apologize for the Steve Miller Band reference. I just couldn’t help myself.