mortgage

Mortgage rates for Jan. 26, 2012

 

 

I'm Kristin Arnold with Bankrate.com and here is your weekly look at mortgage rates.

After weeks of very little movement, mortgage rates were up slightly this week, posting the first increase of 2012. The average 30-year fixed mortgage rate rose to 4.25 percent, which despite the modest increase, is enough to reach a two-month high.

The average 15-year fixed mortgage, which is popular for refinancing, increased to 3.45 percent, while the larger jumbo 30-year fixed mortgage rebounded from last week's record low to settle at 4.62 percent.

Rates for adjustable mortgages were higher too, with the average 3-year and 5-year adjustable mortgage rates increasing for the second week in a row, rising to 3.31 percent and 3.09 percent, respectively.

The recent movement in mortgage rates has been so tame that for much of the past three months, the average 30-year fixed mortgage rate has stayed within a range of less than one-tenth of a percentage point.

But the Federal Reserve's pronouncement about keeping short-term interest rates on hold even longer than expected, until late 2014, is likely to unwind the modest increase of the past week. By keeping short-term interest rates on hold for so long, the Fed is also hoping to keep a lid on mortgage rates.

Whether mortgage rates are rising or falling, it is important to shop around. To find the lowest mortgage rates in your area, use the free search engine at Bankrate.com.

I'm Kristin Arnold.

 

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