Mortgage Rates Rise Slightly For Second Time In 2016

Interest rates on mortgages increase by five basis points

Mortgage Rates Rise Slightly For Second Time In 2016
March 15, 2016

The Weekly Mortgage Rates Radar announced that the interest rates on a number of mortgages increased for only the second time in 2016. The average interest rate on a thirty-year fixed mortgage increased by five points or 0.05 percent, for a total of 3.75 percent. The rates on a 5/1 Hybrid ARM went up by eight points, closing at 3.10 percent.

Labor markets started 2016 fairly low only to improve in February. While the international financial market has been unstable during the start of the year, the U.S. economy appears to be fairly stable. Although growth continues to remain fairly low, it does continue.

When it comes to the Federal Reserve and how this stable economy will affect it, opinions are divided. Some expect to see the Federal Reserve raise rates later in the year if the economy remains as it is. Others expect to see as many as four increases, while some aren’t certain the Fed will make any. Thanks to inflation metrics solidifying and financial markets staying relatively calm, though, it does appear that the Fed may increase rates by the middle of the year.

Keith Gumbinger, vice president, expects that the upcoming Fed meeting will reveal new projections for inflation, growth, and interest rates but will most likely not result in any rate changes. Mortgage rates will most likely stay close to their yearly lows until June.

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Erin | 03.15.16 @ 20:31
I'm glad we refinance a couple of years ago when they were pretty much rock bottom. It doesn't look like they're all that much worse right now though, so it might be a good time for those that haven't done so to jump on it now.
Chrisitna | 03.15.16 @ 20:33
I t's a great time to buy -- if you can get through all the new paperwork and get approved ;/
Nancy | 03.15.16 @ 20:33
Variations like this are to be expected, even though we had a long stretch with rock bottom rates.
Amanda | 03.15.16 @ 20:36
Everything will be raising soon enough, gas prices, mortgages, groceries and everything else in between. If you're thinking on buying better do it now before you can't afford it again.
Carla | 03.15.16 @ 20:37
In the state of our economy, I am not surprised by the slight rise in mortgage rates now. I just hope it stays steady.
Steffanie | 03.15.16 @ 20:37
It always goes up eventually. Glad we are done with refinancing for awhile.
Debbie | 03.15.16 @ 20:37
I am glad we bought our house when we did....we stole it!
$commenter.renderDisplayableName() | 12.02.20 @ 16:13