Mortgage rates edged up this week, but rates are likely to relatively remain low, particularly in the aftermath of hurricanes Harvey and Irma.
How the storms could impact rates
The storms are likely to hold down economic growth temporarily until people begin spending to rebuild their homes, said New York Fed President William Dudley in a recent CNBC interview.
This means Fed policymakers, who meet next week to discuss the economy, could stall another rate increase in the near term. The Federal Reserve exerts an indirect influence on mortgages.
The benchmark 30-year fixed-rate mortgage rose this week to 3.99 percent from 3.95 percent, according to Bankrate’s weekly survey of large lenders. A year ago, it was 3.64 percent.
Four weeks ago, the rate was 4.05 percent. The 30-year fixed-rate average for this week is 0.45 percentage points below the 52-week high of 4.44 percent, and is 0.45 percentage points greater than the 52-week low of 3.54 percent.
Good news for buyers
Even though rates were slightly up this week, the median household income also rose for the second straight year in a row which means many people have more money to put down, improving their chances of getting a mortgage.
The median household income was $59,039 last year, a 3.2% jump from a year earlier, according to Census Bureau data released Tuesday.
The 30-year fixed mortgages in this week’s survey had an average total of 0.29 discount and origination points.
Over the past 52 weeks, the 30-year fixed has averaged 4.09 percent. This week’s rate is 0.10 percentage points lower than the 52-week average.
- The 15-year fixed-rate mortgage rose to 3.22 percent from 3.17 percent.
- The 5/1 adjustable-rate mortgage rose to 3.46 percent from 3.45 percent.
- The 30-year fixed-rate jumbo mortgage rose to 4.01 percent from 3.99 percent.
At the current 30-year fixed rate, you’ll pay $476.84 each month for every $100,000 you borrow, up from $474.54 last week.
At the current 15-year fixed rate, you’ll pay $701.21 each month for every $100,000 you borrow, up from $698.79 last week.
At the current 5/1 ARM rate, you’ll pay $446.81 each month for every $100,000 you borrow, up from $446.26 last week.
Results of Bankrate.com’s weekly national survey of large lenders conducted September 13, 2017 and the effect on monthly payments for a $165,000 loan:
|Breakdown||30-year fixed||15-year fixed||5-year ARM|
|This week’s rate:||3.99%||3.22%||3.46%|
|Change from last week:||+0.04||+0.05||+0.01|
|Change from last week:||+$3.79||+$4.00||+$0.91|