Mortgage Rates See Mixed Movement During the Week

Mortgage Rates See Mixed Movement During the Week

Mortgage rates saw mixed movement during the week of April 12th, 2021. According to Freddie Mac, the average rate for a 30-year fixed mortgage was 2.81%, down slightly from 2.83% the previous week. The 15-year fixed rate also decreased, falling from 2.30% to 2.27%. However, the 5-year adjustable-rate mortgage (ARM) rose from 2.62% to 2.63%.

The slight decrease in the 30-year and 15-year fixed rates is good news for potential homebuyers, as it means they can lock in a lower rate and save money on their monthly mortgage payments. However, the increase in the 5-year ARM rate could be concerning for those looking to purchase a home in the near future.

Mortgage rates have been on a rollercoaster ride over the past year, with the average 30-year fixed rate dropping to a record low of 2.65% in January 2021 before rising to 3.02% in March. This week’s slight decrease is a sign that rates are stabilizing, which could be a positive sign for potential homebuyers.

The current mortgage rate environment is largely due to the Federal Reserve’s decision to keep interest rates low in order to stimulate the economy. The Fed has indicated that it plans to keep rates low until at least 2023, which could mean that mortgage rates will remain low for the foreseeable future.

It’s important for potential homebuyers to keep an eye on mortgage rates, as even small changes can have a big impact on their monthly payments. It’s also important to consider other factors such as closing costs and loan terms when shopping for a mortgage. By doing their research and shopping around, potential homebuyers can find the best deal for their situation.

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