NEW YORK — Homeowners who delayed locking in super-low mortgage rates — think close to 4 percent for a 30-year fixed — may have waited too long.
Rates are creeping back up, in part because of the tax-cut deal in Washington. Now those in the market to buy or refinance have to decide whether to take what’s available or wait — and run the risk that rates will keep rising.
Freddie Mac, the government-backed company that buys and sells mortgages, said Thursday that average rates on 15- and 30-year fixed loans increased sharply from last week. It was the fourth straight weekly rise. Fixed rates had been the lowest in decades.
Even though they’re rising, mortgage rates remain at extraordinarily low levels by historical standards. The average rate on the 30-year mortgage rose to 4.61 percent from 4.46 percent last week. It hit 4.17 percent a month ago, the lowest level in the 40 years that comparable records have been kept.
The rate on a 15-year fixed loan, a popular refinancing option, rose to 3.96 percent. Rates hit 3.57 percent last month, the lowest since 1991.
The opportunity to refinance a home loan at a fixed rate of less than 5 percent is still a pretty good deal, and even better for those who are trapped in an adjustable-rate mortgage.
Still, for those homeowners who already have low rates or are thinking about a second refinancing, a quarter-point to half-point change over the month could be crucial. Many have already refinanced into lower rates in the last year or so at 5 percent or below. They would need rates to be at least 1 percentage point lower to make a refinance financially worthwhile.
Send your real estate news to Mike Benbow, Business editor, The Herald, P.O. Box 930, Everett, WA 98206, by fax at 425-339-3435 or by e-mail at economy@heraldnet.com.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
