Low Mortgage Rates Likely to Stay Down

Mortgage rates have dipped to their lowest levels in more than three years.

After dropping more than an eighth of a point in four days, the average rate on the popular loan term ticked higher Thursday morning, according to the NerdWallet Mortgage Rate Index. Michael Fratantoni, the chief economist for the Mortgage Bankers Association, believes that by December 2017, interest rates will have climbed to 4.8 percent. The average rate on 30-year fixed mortgages fell, the average rate on 15-year mortgages remained unchanged and the average rate on 5/1 ARMs fell. The 30-year FRM averaged 3.48 percent, down from last week when it averaged 3.56 percent.

Furthermore, the 15-year FRM this week averaged 2.78 percent, down from last week when it averaged 2.83 percent.

“As mortgage rates declined this year, we’ve seen that credit access has gone down too”, he notes.

10 year loans are listed at 2.750% and April of 2.954% today.

Published mortgage rates usually change as a result of mortgage related bonds which go up and down with the markets.

The 5 year ARMs stand at 2.875% at Commerce carrying an April of 3.217% to start. Overall markets gained ground by close of day today putting the DJAI at 17929.78 an increase of +235.10. While Brexit may affect these rates in the coming weeks, the already-low interest is due to a number of both foreign and domestic factors.

HSBC has tried to shake things up with the launch of a new fixed rate mortgage with an interest rate at 0.99%. Shorter term 15 year loans are being quoted at 3.125% yielding an April of 3.472% today.

Monthly payments on a 5/1 ARM at 2.88% would cost about $415 per month for the initial 5 years. 7/1 ARM interest rates are available starting at 3.500% today showing an April of 3.581%.

Since the financial crisis in 2008 mortgage rates have steadily fallen.

Mortgage rates at the bank departed from Wall Street’s direction today.