Fixed Mortgage Rates Increase over Holiday Week
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UPDATED: Jan 24, 2013
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Fixed mortgage interest rates moved higher this week according to Freddie Mac’s weekly survey.
Freddie Mac, a provider of stability and liquidity for the United States’ residential mortgage markets, conducts weekly surveys to assess four types of mortgage interest rates.
For the week ending Jan. 24, 2013, the 30-year fixed-rate mortgage (FRM) averaged 3.42 percent with an average 0.7 point. The rate is up from last week when it averaged 3.38 percent. A year ago, the 30-year FRM averaged 3.98 percent.
If a borrower took out a $150,000 mortgage at today’s mortgage interest rate of 3.42 percent, his or her monthly payment would be $666.89. After 30 years, he or she would pay a total of $240,080.40. If a borrower took the same mortgage out one year ago when mortgage loan interest rates were 3.98 percent, they would pay $714.39 monthly for a total cost of $257,180.40 after 30 years. Using the current home loan interest rate rather than last year’s, borrowers would save $17,100.
The 15-year fixed-rate mortgage averaged 2.71 percent with a 0.7 point, up from last week when it averaged 2.66 percent. At this time last year, the 15-year fixed mortgage interest rate averaged 3.24 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.67 percent with a 0.5 point this week, the same as last week. At this time last year, the 5-year ARM averaged 2.85 percent.
The 1-year Treasury-indexed ARM averaged 2.57 percent with a 0.5 point, the same rate as last week. A year ago, the 1-year ARM averaged 2.74 percent.
“Fixed mortgage rates were up slightly over the holiday week but remain highly affordable and should continue to aid in the ongoing housing recovery,” said Frank Nothaft, vice president and chief economist for Freddie Mac, in a released statement.
Nothaft said that existing home sales totaled 4.65 million in 2012, a 9.2 percent increase over 2011. Last year’s pace was the strongest in five years.