Mortgage rates have increased slightly this week, according to the latest figures from the Mortgage Bankers Association. The average rate for a 30-year fixed-rate mortgage rose to 3.75%, up from 3.73% last week. The 15-year fixed-rate mortgage also rose, increasing to 3.21% from 3.19%.
The slight increase in mortgage rates comes as the Federal Reserve announced that it will keep interest rates at near-zero levels until at least 2023. The Fed’s decision to keep rates low is meant to stimulate the economy and help those affected by the coronavirus pandemic.
Despite the slight increase in mortgage rates, they remain near historic lows. This makes it an ideal time for those looking to buy a home or refinance their existing mortgage. Low mortgage rates mean that borrowers can get more house for their money and save on interest payments over the life of the loan.
However, it is important to note that mortgage rates are still subject to change. The Fed’s decision to keep interest rates low could be reversed if the economy improves significantly or if inflation rises too quickly. Borrowers should also be aware that lenders may require higher credit scores or down payments in order to qualify for the lowest mortgage rates.
Overall, the slight increase in mortgage rates this week is not expected to have a major impact on the housing market. Low mortgage rates are still available and could be beneficial for those looking to purchase a home or refinance their existing mortgage. However, borrowers should be aware that rates could change in the future and should be prepared for any potential changes.