At the beginning of the year, mortgage rates for the year fell from the previous year to hang around 4.2% across the board, making it the first time in several years that the rate started above 4%. From January to March, these rates rose steadily with March rates around the middle of the month averaging around 4.25%. In our local area, most lenders were much higher with rates averaging around 4.35%.
Thankfully, April has brought lower rates along with our April showers with the current week beginning much lower and ending slightly lower than the week before. Overall April has been very favorable moving from the previous 4.25+% to hanging around 4.07% as the national average. Although this is lower, we’re still waiting to see a marked difference between the yearly average so far of 4.125-4.25%.
The most recent influence on market trends is the US air strikes in Syria. Traditionally, a conflict involving the US pushes rates lower at first but quickly bounces back with more information available later on. However, with an exceptionally weak job report, rates pushed lower at least for the moment.
This has been very good as rates have come down from as high as 4.5% to about 4.2%, though some still remain slightly higher. As long as the trend continues lower, now is as good a time as any to get a new mortgage. The thing to keep an eye on is when it begins to trend upwards again.
* The above mortgage loan information is provided to or obtained by, Bankrate. The rate is based on 30-year fixed rate mortgage and a loan of $300,000.