Buckfield Maine Area Homes For Sale 04220

Archive for the ‘Interest Rates’ Category

As economy improves, mortgage rates go up

After record lows, mortgage rates have continued to rise in the last few weeks. They are technically still considered “low,” in comparison to years past, but with each increase, a home is that much less affordable. As the interest rate rises, so do monthly payments.

As of mid-February, the average rate for a 30-year fixed rate mortgage was 5.05% in the week that ended today, according to Freddie Mac, up from 4.81% the week before.

In a separate report, the online lender LendingTree.com reported the average 30-year rate was even higher, rising to 5.31% in the last week.

Frank Nothaft, vice president and chief economist at Freddie Mac, explained that long-term bond yields jumped because of recent reports of positive economic data. Lower unemployment rates have also been good news, but tend to have an opposite effect, translating into higher borrowing costs.

If you need help finding a lender, Meservier & Associates of Keller Williams Realty Mid Maine maybe able to help. Send an email  at agent@meservier.com or call us at 207-784-2525.

According to the Boston Globe, recent reports from Freddie Mac reported rates on fixed mortgages again fell to their lowest levels in decades the week of Nov. 8th, with the average interest on 15-year loans dipping to 3.57% from 3.63% a week earlier. The average interest rate for 30-year loans slid to 4.17% from 4.24 percent. That is the lowest since 1971. The Globe went on to note that the impact of favorable borrowing costs is being somewhat dimmed by a high rate of joblessness, foreclosure and tight credit.