Last week, we saw mortgage rates stop and take a breather on their climb up Rate Mountain. Well, this week, they stocked up on supplies, got their gear and rallied because, friends, those rates are climbing. In fact, the 30-year fixed is the highest it’s been since September, 2012.
However, it’s important to remember that just because those rates are on their way up, doesn’t mean they’re not still incredibly low. They’re still .5% lower than they were last year. And it’s still a great time to refinance or buy a home while rates are still hovering near record lows.
Let’s see what those numbers are, shall we?
30-year fixed-rate mortgages climbed to 3.42% with an average of .07 points. Last week they averaged 3.38%. Last year at this time, the 30-year fixed-rate averaged 3.98%.
15-year fixed-rate remained comfortable at 2.71% with an average of 0.7 points, up from last week when it averaged 2.66%. Last year, the 15-year rate averaged 3.24%.
ARMs held on to their standings from last week. The 5-year ARM remained steady at 2.67% with an average 0.5 points. And the 1-year ARM was 2.57% this week with an average 0.5 points. A year ago the 5-year ARM and the 1-year ARM averaged 2.85% and 2.74%, respectively.
Frank Nothaft, vice president and chief economist of Freddie Mac says:
“Fixed mortgage rates were up slightly over the holiday week but remain highly affordable and should continue to aid in the ongoing housing recovery. For instance, existing home sales totaled 4.65 million in 2012, showing a 9.2 percent increase over 2011 and the strongest pace in five years. In addition, the Federal Housing Finance Agency’s purchase-only house price index rose 5.7 percent over the 12 months ending in November 2012, marking the largest annual increase since June 2006.”