Mortgage interest rates are not as low as they were, but they dipped slightly and are still a good move if you are considering refinancing, or buying.
Right now, refinancing is on the upswing. The Mortgage Bankers Association says an increasing number of people are taking advantage of the relatively low rates.
64 percent of the total mortgage applications in the week ending January 17, 2014 were for refinancing.
Interest rates for 30-year fixed-rate mortgages with what lenders call “conforming loan balances” of $417,000 or less decreased to 4.57 percent.
That’s the lowest level since November 2013.
The average contract interest rate for 30-year fixed-rate mortgages with what lenders call “jumbo loan balances,” for amounts greater than $417,000, also decreased to 4.57 percent, matching the November 2013 low.
FHA interest rates are different than those for conventional loans, and the average interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.24 percent. Again, that’s the lowest level since November 2013.
If you are willing to take a 15-year-fixed-rate mortgage, you can get an even lower interest rate of 3.68 percent.
Adjustable Rate Mortgages
Experts don’t advise taking an adjustable rate mortgage, or ARM, unless you are going to be in the property for a very short time. Right now the interest rate for ARMs is 3.23 percent.
While the chilly season isn’t exactly the time most people choose to go house hunting, there are some homebuyers who don’t have a choice. They also want to lock in interest rates below 5 percent.
We recently reported about Angel and William Wong, a New York City couple who purchased home the first week of January 2014.