Mortgage Rates Fall Slightly as July Begins
Although mortgage rates change daily, the beginning of July saw an overall downward trend for interest rates, making it an excellent time to purchase or refinance a home. This comes after the beginning of summer showed a slight raise in market rates across the board for buyers.
As of July 1, the average rate on 30-year fixed mortgages fell to 3.53 percent, a full 20 basis points lower than the end of June. At this rate, borrowers can expect to pay approximately $450 per month in principal and interest for every $100,000 borrowed on a home mortgage loan.
The average rate on 15-year mortgages remains at 2.71 percent, unchanged from average numbers for June. Monthly payments for borrowers carrying this type of loan at the average interest rate are expected to be approximately $675 for every $100,000 borrowed.
Meanwhile, the average interest rate on 5/1 Adjustable Rate Mortgages (ARMs) dropped to 2.88 percent. Of course, buyers should beware low rates on ARM loans because the interest rate is likely to be much higher once the rate adjusts at the five-year mark.
As with any type of loan, buyers with excellent credit and steady income are likely to achieve even lower rates, while those with a rocky financial outlook or poor credit history are likely to pay interest rates that are higher than average. Regardless, it remains a great time to lock in an interest rate before they inevitably begin to rise once again.
Image via Flickr/williamwebster