On Tuesday, Nerdwallet released the average mortgage rates in the country:
…the average interest rate on a 30-year fixed-rate mortgage rose four basis points to 6.943% APR. The average rate on a 15-year fixed-rate mortgage dropped four basis points to 6.011% APR, and the average rate on a 5-year adjustable-rate mortgage fell five basis points to 5.718% APR, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is 37 basis points higher than one week ago and 390 basis points higher than one year ago. A basis point is one one-hundredth of one percent. Rates are expressed as an annual percentage rate, or APR.
So we’ve seen a decrease in 15 and 5-year adjustable-rate mortgages. Meaning they are hoping to make those more attractive to buyers now, knowing that they can change the rate later due to buyers being locked in for a less amount of time. Make sure you do the math before choosing which rate to go with. Just because it is cheaper now, doesn’t mean that trend will continue once you 5 or 15 years are up.
If you have any questions about strategizing whether to buy now or later, please feel free to reach out to our team of Real Estate Advisors. We can help you make the wisest decision for you!
Questions? Reach out to one of our advisors for a chat!
Link to full Nerdwallet article: https://www.nerdwallet.com/article/mortgages/mortgage-interest-rates-forecast