Digital News Report – Our survey of mortgage interest rates shows a downward trend today with 15 and 30 year fixed rate mortgages. The 5/1 ARM was slightly higher Monday compared to Friday (see chart below).
The fear last week was that rates were on their way up. This may still happen but today rates were slightly lower. For the past year rates have been incredibly low with the Federal Reserve providing money and low rates at their discount window. The Federal Reserve has been buying up mortgages to free up money at the banks.
Many Americans wonder if they should make extra payments. According to Alki Danikus with Money 101 it made sense when rates were higher. Today rates are at a low, well below 7 or 8 percent. The higher the rate the more sense it makes to pay off the loan quickly to avoid extra interest.
Last week’s decline in interest rates has prompted a mini-buying boom, according to the AP. Potential buyers want to get in before rates move higher. Craig Strent, co-founder of Apex Home Loans in Bethesda describes it as a “panic”.
By: Tina Brown
|Average 30 yr fixed
|Average 15 year Fixed
|Average 5/1 ARM