Expect Rates to Rise

Rates continue to hover in a similar area as before.  As a warning, however, it is unusual for rates to remain so low with other aspects of the economy recovering.  Though the Fed has suggested a rate hike near the end of summer, the economy is a better gauge of where rates are headed, so be aware of the economic climate.  For more info on what makes rates change, you can check out our previous blog post on the topic here.

Here are this week's rates:

30-yr Fixed

Conventional:  4.000%*                 FHA/VA:  3.500%*

15-yr Fixed

Conventional:  3.250%*                 FHA/VA:  3.125%*

 

 

*These are the closest “par” rates for the different types of mortgages.  They assume very good credit, sufficient equity, and the absence of other negative risk factors (e.g. property use, cash-out or not, loan amount, etc.).  Different specific risk factors will affect interest rates.

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