The New Year Brings A Drop In The 30-Year Fixed Mortgage Rate!

For the first time since the presidential election, we are finally beginning to see a drop in mortgage rates. The 30- year fixed mortgage rate increased by 40 basis points in the two weeks following the election, raising the rate to 3.94%, as stated by Freddie Mac Chief Economist, Sean Becketti.

According to a report done by Freddie Mac, the 30- year fixed rate mortgage ends the week of January 5, 2017 at 4.20%; this is down from the previous week’s 4.32%. The 15- year fixed rate mortgage rate sits at 4.44%, down from last week’s 5.55%.

After a gradual increase over the past nine weeks, the decrease is a welcome break from the rising rates. With that being said, rates are still looking good for those in the market to refinance or purchase a new home, and now may be an optimal time to act!

Check out AmeriSave’s rates today, and let us serve all of your mortgage needs!

Don’t Let The Fear Of Rising Rates Take You Out Of The Race!

With a new government administration set to take office, the mortgage industry is in for some changes, which is to be expected with any new elected president. Since the election, Americans have seen an aggressive increase in mortgage rates, which are currently siting at their highest level since May 2014; that, along with the news that the federal reserve voted to raise interest rates, has borrowers wondering how the new changes will affect their lending options. However, fear of rising rates shouldn’t be a deterrent considering they are still reasonably low.

According to a survey done by Freddie Mac, last week the average rate for a 30-year fixed-rate mortgage was 4.13%, this week the rate rose to 4.16%. This time last year, the average rate was 3.97%. This means, if a borrower were to put a 20% down payment on a $241,000 home today, they’d only be paying about $21 more each month compared to what they would have paid a year ago.

Right now the fear of rising rates has painted a doom and gloom picture on the mortgage industry that is far from the truth. Rates under 5% have been the norm for the last decade, and we have quite a way to go before that changes. Perspective is key when examining rates, and by historical standards, rates are still looking great for 2017. Consider this, if interest rates were to increase another 25 basis points, the change in mortgage payments would be insignificant.

If you’re in the market for a new home or considering refinancing your mortgage, now may be the time to act! Let AmeriSave serve your mortgage needs. Check out our rates today!