Mortgage Refinancing - Still Popular Despite Mortgage Rate Increase

According to results published this week by Bankrate.com following their weekly national survey, overall mortgage rates have shown a slight increase, with the average conforming 30-year fixed mortgage rate increasing to 4.58 percent, the average 15-year fixed mortgage increasing to 4.06 percent, and the larger jumbo 30-year fixed rate also increasing to 5.23 percent. Adjustable Rate Mortgages (ARMs) had also increased this week, with the average 5-year ARM increasing to 3.91 percent and the average 7-year ARM increasing to 4.17 percent.

These increases in mortgage rates have been attributed to some of the positive signs being displayed by the economy, such as the August jobs report, which was actually not as bad as many experts had predicted it would be. Mortgage rates still remain relatively low, and they are expected to continue to fluctuate, depending on the state of the economy and levels of investor confidence. Many homeowners who have not been as badly affected by the country’s economic woes have also capitalized on the low mortgage rates by refinancing, in order to reduce their monthly payments or pay off their mortgages sooner. Although mortgage rates have increased since the record lows reached recently, this trend of refinancing is expected to continue.