According to The Mortgage Reports, rates for the most popular loan types are lower than what we saw this time last week. In particular, the 30-year fixed-rate mortgage (FRM) is currently averaging 3.03 percent, down from 3.11 percent a week ago. The 15-year FRM also decreased slightly to 2.36 percent, a fall of 0.02 percent compared to last week's rate of 2.38 percent.
On the other hand, the 5/1 adjustable-rate mortgage (ARM) has stayed consistent, with an average of 2.9 percent this week. The average rate for the 5/1 ARM was also 2.9 percent last week.
Today’s mortgage rates are supported by record low bond yields. These yields are driven by concerns about the coronavirus and its potential effect on the economy. Investors are increasingly turning to the government bond market for safety and stability. This means that mortgages are becoming more affordable for borrowers who are looking to refinance.
As always, it’s important to remember that mortgage and refinance rates can vary greatly depending on your credit score, the type of loan you’re considering, and where you live. To get the best deal on a mortgage or refinance, it’s always important to shop around for the best rate.
In Summation:
Mortgage and refinance rates have seen a positive movement this week as the average 30-year fixed-rate mortgage (FRM) is currently averaging 3.03 percent, a decrease of 0.08 percent from last week's rate. The 15-year FRM also decreased slightly to 2.36 percent, a fall of 0.02 percent compared to last week's rate of 2.38 percent. Meanwhile, the 5/1 adjustable-rate mortgage (ARM) has stayed level with an average of 2.9 percent this week. Record low bond yields are driving today's mortgage rates, with investors turning to the government bond market for safety and stability. It's important to shop around for the best rate as rates and fees can vary greatly depending on your credit score, the type of loan you’re considering, and where you live.
This article was contributed on Sep 21, 2023
