Freddie Mac announced on Thursday, April 3, 2014 that the average 30-year fixed rate loan went up from 4.40% to 4.41%. The average 15-year mortgage rate increased also from 3.42% to 3.47%. Despite the recent mortgage increase, the rates have remained at historically low levels.
How exactly is the average mortgage rate calculated? Freddie Mac surveys lenders all across the nation between Mondays and Wednesdays of each week. When the average is calculated, the extra fees, also known as points, are not included. Borrowers pay for points to help them get the lowest rates. One point is equivalent to 1% of the loan.
As the mortgage rates increased, so did the average fees. The 30-year mortgage fee rose from 0.6 points to 0.7 points. The 15-year loan fee stayed unchanged. The 1-year adjustable-rate loan rose from 2.44% to 2.45%; its average fee remained at 0.4 points. The 15-year adjustable-rate mortgage increased from 3.10% to 3.12% with the fee steady at 0.5 points.
The Federal Reserve has a new plan to cut its monthly long-term bond purchases to about $55 million. They think that by implementing this new plan it will assist the housing market as the economy is steadily healing. The Federal Reserve continued to say that after raising the short-term interest rates, the job market has strengthened and inflation has risen.
Even though the mortgage rates have increased, it is still possible for people to buy homes and select the appropriate home mortgage today. Ace Mortgage Loan Corporation can help you if you live in Coral Springs, Delray Beach, Boca Raton, Plantation, Coconut Creek, Davie, or Pompano Beach. With the help of Ace Mortgage Loan Corporation, you can be able to get secure a mortgage with a payment plan that you feel comfortable with. We can help you get a loan through Fannie Mae and Freddie Mac, apply for a VA loan, and learn how to refinance your home.
With our home loan advice and special mortgage tools, you will feel secure with your home financing. Yes, the average mortgage rates went up, but don’t worry. Ace Mortgage Loan Corporation will help you and we’ll do our very best to help you feel confident about your personal mortgage. Call us today to get a free consultation.