According to The Mortgage Reports, the average 30-year fixed rate mortgage loan has dropped from 4.31% to 4.20%, a decrease of eleven basis points. In addition, 15-year fixed loans are now available at a rate of 3.44%, down from last week's 3.60%.
The 5/1 adjustable-rate mortgage loan is also seeing positive changes this week with the rate dropping from 3.48% to 3.37%. This rate option offers a lower interest rate for the first five years of the loan and then subsequently adjusts each year following the five-year period.
Meanwhile, those seeking to refinance their current mortgage loan can take advantage of attractive fixed-rate options. The average rate for a 10-year fixed-rate refinance loan is currently 2.97%, down from 3.04% just one week ago. Shorter-term loans such as the 7/1 adjustable-rate loan also remain attractive at a rate of 2.83%.
Despite the slight drop in rates, experts are cautioning consumers to proceed with caution when choosing a mortgage product. Locking in a higher rate for too long could prove costly if interest rates continue to go down in the future, while opting for an adjustable-rate loan could expose borrowers to increased risk if rates start to increase. Borrowers should carefully consider all of their options before making a decision and compare the terms and fees associated with different loan products.
Overall, mortgage and refinance rates are continuing to show signs of improvement this week, which could provide homeowners and prospective buyers with more options and the potential to save money. However, it's important to be mindful of the risks involved with any loan product when making a decision to ensure that it is the right fit for your long-term financial needs.
Mortgage and refinance rates across the US are continuing to see improvements over the past week, with rates decreasing across both fixed- and adjustable-rate products. Average 30-year fixed rate mortgage loans saw a decrease of eleven basis points from 4.31% to 4.20%, while the 15-year fixed rate decreased from 3.60% to 3.44%. 5/1 adjustable-rate mortgages saw a decrease from 3.48% to 3.37% as well. Refinancing options are also proving to be attractive, with 10-year fixed rate refinance loans now offered at a rate of 2.97%, and 7/1 adjustable-rate loans currently available at 2.83%.
Though mortgage and refinance rates have decreased, borrowers need to be mindful of the risks involved when considering any loan product. Long-term fixed loan products could prove to be costly if interest rates continue to decrease in the future, while adjustable-rate loans could lead to more expensive payments as interest rates increase. It is important for borrowers to compare the terms and fees associated with different loan products to make sure they find the right fit for their financial needs in the long run.
Overall, mortgage and refinance rates have continued to improve this week, offering homeowners and prospective buyers the potential to save money on their loan products. It is important to carefully consider the risks involved and compare the options available when making a decision.
This article was contributed on Oct 16, 2023