If you are in the market for a new home, historically low interest rates beckon. Those rates, however, have risen slightly in the past week although there is no indication that these rates will rise dramatically in the weeks and months ahead.
Last Thursday, mortgage buyer Freddie Mac announced that the average interest rate for 30-year fixed-rate mortgages rose slightly to 3.34 percent, up from 3.32 percent a week earlier. The current rate is within range of historic lows and is well below the 3.99 percent average of one year ago.
Shoppers for 15-year mortgages can get a loan averaging 2.67 percent up by .03 percent over last week. Last year at this time the 15-year average was 3.27 percent.
Home buyers considering a variable rate mortgage may want to take a look at the interest rate for 5/1 ARMs. Those rates have fallen slightly, dropping from 2.72 percent to 2.69 percent in one week. Adjustable rate mortgages have not dropped as dramatically as have other loan options as the rate last year was 2.93 percent.
Buyers should be aware that the in interest rate averages quoted by Freddie Mac are just that — averages. When shopping for a home loan, expect your quoted rates, terms and conditions to vary from lender to lender. Also, consumers should know that announced interest rates are typically for people with very good or excellent credit. If you have credit problems, you will likely be charged a higher interest rate if you qualify for a loan in the first place.
Home shoppers are also discovering that home prices are rebounding. A Zillow study of home prices reveals that the average U.S. home is valued at $155,400 up 4.7 percent year over year. The priciest markets are in San Jose averaging $606,100 and San Francisco at $506,500 followed by Honolulu and Santa Cruz, Calif.
On the other end of spectrum home prices in Saginaw, Mich., are averaging just $59,300 followed by Youngstown, Ohio, at $75,100, Mobile, Alabama, at $75,900 and Detroit at $79,700.
Ups and Downs
Zillow has found that Phoenix is leading the rebound with prices up 22.3 percent for the year with Roanoke, Va., San Jose and Denver among the cities posting the largest gains. Some markets, however, continue to see housing prices slide including those in Omaha, Atlantic City and Atlanta. Prices in local markets can vary from neighborhood to neighborhood too with some areas still sifting through numerous foreclosures.
See Also — 4 Steps To Applying For A Consumer Loan
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