If you plan on buying St. George Real Estate one of the most important parts of the Real Estate market you should be watching is mortgage interest rates because, the rate that you ultimately end up paying will also affect your mortgage interest rate as well.
In the last week we’ve seen the average mortgage interest rate for a 30-year fixed mortgage loan decrease to just 4 percent while the 15-year mortgage interest rate rose to 3.23 percent.
WHAT WILL THE FEDERAL RESERVE DO NEXT?
Thanks to the surging economy it’s looking like the Federal Reserve is going to raise interest rates and this will be the first time they’ve taken this action in close to 10 years since they believe that super low mortgage interest rates are not needed any longer to stimulate our economy.
Mortgage Interest Rates Still Historically Low
One notable fact about the 2015 Real Estate market is that mortgage interest rates are still historically low even when compared to 2014 statistics since rates last year were at 4.17 percent for a 30-year fixed mortgage loan and 3.30 percent for a 15-year mortgage loan.
“As the Fed looks to return interest rates to “normal” over time, it bears noting that the interest rate associated with “normal” continues to shrink. Over the last 10 years — a considerable time frame — conforming 30-year fixed-rate mortgages have averaged just 5.09%. Over the last five years, conforming 30-year fixed-rate mortgages have averaged just 4.21%”. – Source: fool.com
How Are Average Mortgage Rates Calculated?
Mortgage interest rates are calculated when industry giant Freddie Mac surveys lenders at the beginning of each week but their stats for the average mortgage interest rates don’t include things like fees or points which every borrower must pay.
LEARN MORE ABOUT THE ST. GEORGE REAL ESTATE MARKET
To get started with buying a St George Home contact me today by calling (435) 862-3303 or click here to connect with us online.