Wells Fargo Home Mortgage reports that today's interest rate for a 30-year fixed-rate mortgage is 5.000%, remaining steady from last week's rates.
Low mortgage interest rates are anticipated to spur another week of increased applications for refinancing and purchase loans. In addition to a 30-year fixed-rate loan at 5.000% (5.191% APR), Wells Fargo today lists the following loan rates:
- 30-year Fixed-rate FHA loan at 5.500% (6.245% APR)
- 15-year Fixed-rate loan at 4.375% (4.700% APR)
- 5-year ARM at 3.875% (3.564% APR)
- 5-year ARM FHA loan at 3.875% (3.401% APR)
Real estate industry experts anticipate mortgage rates rising later in 2010, particularly as the federal government phases out their support of low mortgage rates. Currently, the Federal Reserve and the Treasury Department have programs in place which keep mortgage interest rates low and which buy up mortgage securities, which allows lenders an added measure of safety that they will be repaid if loans go into default. The Washington Post reported today that these programs are set to end in March 2010. Whether or not mortgage rates rise significantly as a result of these government changes remains to be seen.
An added pressure on the housing market, in addition to ending these government programs in March, will be the end of the homebuyer tax credit April 30. Many real estate experts believe the tax credit, combined with low interest rates, has lead to a revival of home sales in markets across the country. Experts predict a dip in home sales after the credit expires.
Written by Michele Lerner
HULIQ.com
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