Although the mortgage market went nowhere on many products this week, the average rate on a 15-year fixed mortgage lost one basis point, averaging 2.47 percent in the latest Bankrate survey.
Despite generally trending upward since February, mortgage rates have mostly fallen in April and remain near historical lows. The latest dip is certainly good news for borrowers who may have worried about missing the boat on the lowest-possible rates.
Across the board, mortgage rates have been extremely low since the start of the coronavirus pandemic, and that has made 15-year mortgages more attractive than ever. A 15-year mortgage can produce substantial savings because they usually have lower interest rates than their 30-year counterparts, and with less time for that interest to compound, 15-year amortization schedules wind up being much less expensive overall.
However, 15-year loans can squeeze household budgets with higher monthly payments, so they can prove unaffordable in higher rate environments.
Many experts in Bankrate’s weekly poll predict rates will remain more or less the same next week, too.
“I expect some small movement both up and down, but for the most part rates should remain flat,” said Jennifer Kouchis, senior vice president of real estate lending at VyStar Credit Union in Jacksonville, Florida.