Mortgage rates today are hovering near the 5 percent mark. This comes at a critical time for the Federal Reserve, which meets on Tuesday to discuss how to proceed in the next coming months as economic recovery becomes more of a reality. When and how to raise mortgage and interest rates without causing widespread panic is the controversial topic du jour.
Today’s 30-year mortgage rates are mainly hanging around above the 4.5 percent mark. The results vary depending on bank and area. The online real estate marketplace Zillow has a 60 minute average mortgage rate ticker, which shows the 30-year fixed-rate mortgage at 4.77 percent down from Monday’s 4.81 percent. Zillow’s 15-year fixed-rate mortgage is currently up a percentage point from yesterday at 4.21 percent. Finally the 5 –year Adjustable Rate Mortgage is also up at 3.58 percent from yesterday’s 3.53 percent.
According to popular mortgage lender Wells Fargo, mortgage rates are slightly higher. For example the 30-year fixed-rate mortgage is currently pegged at 4.87 percent with an APR of 5.05 percent. Similarly, the 15-year fixed is above Zillow’s numbers at 4.25 percent. The 5-year ARM is actually lower than Zillow’s at 3.75 percent.
The banking site Bankrate.com also offers overnight mortgage rate averages. These rates seem to be highest of all on the 30-year mortgages which are at 5.06 percent. The 15-year mortgage according to Bankrate.com is down to 4.36 percent from Monday’s 4.37 percent average. The 5-year ARM is noticeably higher than the competitor sites at 3.92 percent.
Will Mortgage Rates Rise?
The question of what to do with mortgage rates is currently being debated by the Fed. The economic recovery has not reached a point of satisfaction yet. Unemployment numbers are still high. Consumer growth remains weak, and the housing market is still plagued by foreclosures. Should the Fed maintain low mortgage rates for an extended time or eliminate the artificially low rates all together?
Murmurs of a double-dip recession have been played in the media of late. Should the Fed make the wrong move, America could plunge even further into an economic wasteland. Rising interest rates and mortgage rates could actually hurt Americans who need the break to buy homes, refinance or modify home loans. With higher mortgage rates, the housing market may take even longer to recover.
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Written by Lani Shadduck
HULIQ.com
DataSource:Zillow.com,Bankrate.com,WellsFarg
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