RateAPY

Mortgage Rates Inch Up

Posted by: RateAPY Bank Rates News
October 26th, 2009

Average mortgage rates for long-term home loans rose to an even 5% after dipping below that level for three weeks, according to the latest weekly survey of mortgage rates by Freddie Mac.

Rates for 30-year fixed-rate mortgages were still roughly 1% below the average of 6.04% at this time last year. The 15-year fixed-rate mortgage averaged 4.43%, up from the previous week’s average of 4.37%.

Adjustable-Rate Mortgages Creep Up

Average adjustable-rate mortgages edged up too. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.4%, up from the previous week’s average of 4.38%. A year ago, the 5-year ARM averaged 6.06%.

Most consumers are opting for the predictability of fixed-rate mortgages. Only 6% of mortgage applications in September and October so far have been for adjustable-rate mortgages, reports the Mortgage Bankers Association.

Whether you want to buy a home or refinance a mortgage, shop for the lowest current mortgage rates to get the best deal.