Following the recent job report that an impressive 298,000 positions were filled in February, most industry pundits are now convinced the Federal Reserve will raise interest rates when it meets on March 15. Not surprisingly, the expectations for a rate hike -- if not several this year, as some have speculated -- has already had an impact on mortgage rates.
Here are today's average mortgage rates across the U.S., along with where they stood a month ago.
|
Mortgage Rates (National Average) | ||
|---|---|---|
| Mortgage Type |
Today |
1 Month Ago |
|
30-year fixed jumbo |
4.65% |
4.24% |
|
30-year fixed |
4.16% |
4.01% |
|
15-year fixed |
3.28% |
3.15% |
|
30-year fixed refi |
4.19% |
4.05% |
|
15-year fixed refi |
3.30% |
3.18% |
|
5/1 ARM |
3.26% |
3.14% |
|
5/1 ARM refi |
3.35% |
3.25% |
Data source: Bloomberg. Rates may include points.
The likelihood of continued slow -- but steady -- increases in mortgage rates is high and seemingly climbing daily. While still relatively inexpensive compared to years gone by, home buyers can expect rates to creep up throughout this year.
In fact, some pundits expect as many as three rate hikes this year, and perhaps another three next year. Though the jumps in interest rates are largely seen as a bullish sign that the economy is strong enough to withstand increased borrowing costs, folks out shopping for homes will ultimately pay a bit more with each hike.
Unlike mortgage rates for new homes, the strength in the housing market has been a blessing for current homeowners considering home equity lines of credit (HELOC) or equity loans. Both rates have declined in the past month, to 5.22% and 5.21% respectively, from last month's 5.28% and 5.26%.
