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Best (Mortgage Companies) FHA, VA Loans Broken Arrow, OK 918-906-9490

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Mortgage Rates Pop To 7-Year Top - Conventional, FHA, USDA, & VA

It’s a tough time to be mortgage shopping.

According to Freddie Mac, 30-year fixed-rate mortgage rates moved to 4.61% this week, on average — their highest levels since 2011.

The data is part of the group’s Primary Mortgage Market Survey, a weekly summary of the U.S. interest rate landscape as reported by approximately 125 lenders nationwide; a group comprised of large retail banks, mid-size mortgage lenders, and credit unions.

Survey results are just an average.

Some borrowers will be quoted lower rates than what Freddie Mac reports, and others will be quoted higher. Plus, mortgage rates are affected by about a dozen external factors which could move your rate up or down.

No matter what type of rate you need, your quoted rate will be higher as compared to the start of 2018.

Since January 1, 30-year mortgage rates are up roughly 0.625 percentage points, adding forty dollars to payments per month per hundred thousand borrowed, and lowering the amount of house a buyer can afford by 8 percent.

Long-Term Mortgage Rates Hit A Seven-Year High

It Will Cost You More to Buy A Home

The housing market topped a new threshold over the past week. Buoyed by a strong economy and a series of interest rate increases by the Federal Reserve, thirty-year fixed mortgage interest rates reached 4.61% the highest number since May of 2011.

Rates crossed the 4% threshold in the week of January 11 and they have been on a relatively steady rise since then. If this pace continues, we'll hit 5% before the year is out.

Should rising interest rates deter you from buying a home? Not necessarily, but it may cause you to re-think your definition of an affordable home.

How Much More?

To see the effect of higher interest rates, consider this example. Let's assume you're buying a $200,000 house with a 20% down payment. Your monthly principal and interest payment will be $764 at 4% interest, $821 at the current 4.61%, and $859 at 5%. For the $160,000 you are borrowing, the difference between 4% and 5% amounts to over $34,000 in extra interest charges over the life of the loan.