Mortgage rates experienced a considerable amount of movement in recent years, but currently hover near all-time lows.
Although the mortgage rate you receive depends on your personal financial history, credit standing and the property in question, it’s still a good idea to know what the market looks like and what to expect before you shop around for an FHA or VA loan.
During the week ending January 3, the average rate for a 30-year fixed-rate mortgage fell to 3.34 percent, according to a report from Freddie Mac. This was down from 3.35 percent a week earlier. Meanwhile, 15-year FRMs averaged 2.64 percent, which was a decline from 2.65 percent.
“Mortgage rates started the year near record lows which should continue to aid the ongoing housing recovery,” said Freddie Mac vice president and chief economist Frank Nothaft.
Mortgage landscape shifts dramatically
Prior to the housing market collapse nearly six years ago, receiving a mortgage rate of a low as 6 percent was considered a once in a lifetime opportunity. But based on the developments in recent years, this claim has been put to shame.
Although consumers have access to some of the most affordable rates in recorded history, many are concerned about the future. According to a recent report from Fannie Mae, roughly 43 percent of Americans expect rates to increase dramatically during the course of 2013. However, even if rates increase by as much as 2 percent – which is the average consumer expectation – they will still be well below where they were prior to the real estate bubble burst.
Future appears foggy
Even though a growing number of consumers anticipate higher rates in the near future, there is little evidence to support this sentiment. In fact, a number of recent developments support the opposite.
For example, the Federal Reserve announced it would continue to inject funds into the bonds market until the unemployment rate improves. Because this economic sector and mortgage rates are so closely intertwined, this would lead many to believe rates should remain at current levels for some time.
Arming yourself with the most up-to-date housing market details is a great way to stay informed of current mortgage loan rates. Freedom Mortgage offers some of the most extensive news, homeowner tips and personal finance information in the industry.
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