Although most types of mortgages fell a bit last week, experts are predicting a rise in rates in the upcoming weeks due to positive trends in the economy and stock market.
30-year fixed: twelve weeks under 4.0 percent
Last week, Freddie Mac reported that rate for 30-year fixed mortgages dropped to 3.87percent — the lowest in over 50 years. By the end of the week, though, the rate climbed a bit to reach 3.95 percent. (via SFGate)
Rising mortgage fees could impact rates
With rates so low, borrowers may not notice or care so much about rising fees associated with getting a mortgage right now. Long-term, however, these rising fees could signal the increasing difficulty — and cost — of securing government backed mortgages.
For instance, lenders pay a guarantee fee to Fannie Mae and Freddie Mac that will be increasing 1/10th of a percentage point on April first — something banks will pass on to its borrowers through an interest rate increase of around 1/8th of a percentage point.
If this fee increase does signal a trend in rising mortgage costs, borrowers could be looking at higher and higher origination costs for their loans. (via WSJ’s MarketWatch)