Buying and financing a new home is one of the largest expenses we have in our lives, regardless of the city, state or country we choose to live in. Since financing the purchase of a house is one of the main concerns of many US families, getting the lowest mortgage rates in the market will not only save you a lot of money, but will also give you peace of mind by knowing that you'll be able to pay off the house you want to buy and live in.
Fortunately, for those of you who are looking to refinance your mortgage, the fixed rates are very low, although slightly increasing, and in the last month have even reached the lowest long-term rates since the 1950's.
According to the mortgage finance company Freddie Mac, the 30-year average fixed-rate mortgages rose from 3.59% two weeks ago to 3.62% last week, although they are still at a relative low, considering that last year, the 30-year fixed-rate mortgages reached an average of more than 5%, with its lowest being 3.91% at the end of 2011.
The 15-year fixed-rate mortgage rates have also gone up slightly from 2.84% two weeks ago to 2.88% last week. The only rate that hasn't gone up last week is the 5-year ARM which went down to 2.76% from 2.77% two weeks ago, becoming the 5th lowest 5-year ARM since the beginning of 2012.
The 1-year ARM has also increased from 2.65% two weeks ago to 2.69% last week, although it is still lower than 3 weeks ago.
It seems like this increase in mortgage rates has played a part in the 4.5% decrease of mortgage applications last week compared to two weeks. Last week, the Purchase Index decreased 2% and the Refinance Index decreased 5%.
Despite there being a small decrease in the refinancing mortgages, they still amount to 81% of the total mortgage applications.