Mortgage Rate News

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Many people are looking to find the best mortgage rates right now. Even though mortgage rates are reasonably low right now, it can be tough to get the best rates. And mortgage interest rates are rising. MarketWatch reports on recent mortgage rates — the points you need to pay in order to get them:

According to the MBA survey, 30-year fixed-rate mortgages carried an average interest rate last week of 5.38%, up from 5.17% the week before.

As for 15-year fixed-rate mortgages, the average climbed to 4.71% last week, up from 4.60% the week before. And 1-year ARMs averaged 6.71% last week, up from 6.67% the week before.

To obtain the rates, the 30-year fixed-rate mortgage required payment of an average 1.18 points, the 15-year fixed-rate mortgage required an average 1.20 points and the 1-year ARM required an average 0.08 point. A point is 1% of the mortgage amount, charged as prepaid interest.

Mortgage interest rates aren’t the same for everyone

Many people mistakenly believe that the average mortgage rate is the same everywhere, and that anyone can get that rate. They are disappointed when it turns out that they don’t actually qualify for the lowest possible mortgage rate. Indeed, things like down payment, credit history and points paid all affect what mortgage interest rate the lender is willing to offer you. If you have a lower down payment, or if you have a low FICO score, or cannot pay points, the lender will compensate for the increased risk by giving you a higher interest rate.

Additionally, it is important to not that national averages are just that: national averages. This means that your local area may have a higher or lower rate than the national average. Local interest rates are determined by the local real estate market and other factors. So, be careful when getting your hopes up over mortgage interest rates. You may find that there is a little more you have to do to get the best rate.