Fixed mortgage rates rise, adjustable rates fall

According to Freddie Mac, the long-term fixed mortgage rates are increasing, whereas the average adjustable-rate mortgage rates are still to reach the level it was earlier on. So due to this difference in this two rates, adjustable rates may become popular among the mortgage seekers. Freddie Mac has said that because of he widening gap between the two type of mortgages, people may tend to take up adjustable rates for their mortgage loans.

The long term rate is back to the place where it was in the starting of the year. The adjustable rates are slightly lower than its previous level in the starting of the year (it is 0.5 percentage point lower).

Last week Previous week
30-year fixed-rate loan average 6.04% 5.72%
15-yearfixed-rate loans 5.64% 5.25%
5-year adjustable mortgage (ARMs) 5.37% 5.19%
1-year Treasury-indexed ARMs 4.98% 5 %

Last year at the same time, the 30-year averaged rate was 6.22% and the 15-year fixed-rate loan had an average of 5.97%. The five-year adjustable-rate mortgages (ARMs) had an average rate of 5.96% a year ago. One-year Treasury-indexed ARMs was 5.49% a year ago.

As the rats are increasing now, so, it may be little difficult for you to go for mortgage loans. But when you take adjustable mortgage loans, make sure you know what it means. Adjustable rates may seem lower now, but when they reset it may be a big problem for you. Talk to your agent about such loans. Find out what they may mean to your financial health and then only decide.