Have you been following mortgage trends lately? When you plan on buying a new Utah home to live in or to invest in, watching mortgage trends closely will immensely help you lock in a great deal. With the events of recent weeks, if you have been following mortgage averages, you know that the time to apply for one is now.
Historic Low Rates
Interest rates on mortgages reached a historic low in almost a year last week. As a result, mortgage application volume leapt higher by 9.9%. Compared to the volume during the same week last year, the volume last week lagged behind by 19%. The higher volume last week, nonetheless, indicates that mortgage rates have become favorable recently.
Rates Have Started to Climb
For this week, you can still avail of low-interest rates, although you will have to move fast. Rates have begun to move slowly higher. The U.S. tensions with North Korea drove interest rates down before as investors ran to the relative safety of bond markets. Since issues with North Korea have declined now, however, investors have begun to leave bonds, pushing the rates up.
Rate Averages This Week
The 30-year fixed mortgage, for example, raised one basis point to reach 3.74%. The 15-year fixed mortgage, on the other hand, remained as it was the week before at 2.95%. Lastly, the 5/1 adjustable-rate mortgage crawled 2 basis points up to 3.11%.
In Terms of Payments
When you calculate these rates, you can still get a good deal from mortgage lenders here in Utah. American Loans noted that you simply need to shop around. Take the 30-year fixed mortgage average. For every $100,000 you borrow, you only need to pay $462.55 each month. That payment already includes the principal and the interest of the loan. For the 15-year fixed, you will pay $688, while for the 5/1 ARM, you will pay $428.
As long as you move fast and shop around, you can make up for not getting a loan last week by finding a good deal today.