Friday, May 31, 2013

Mortgage Interest Rates on the Rise

For the fourth week in a row, interest rates have been going up. The national average for 30 year fixed rate mortgages has gone up .22 percentage points in the last week raising the average to 3.81%, as reported by Freddie Mac on May 30, 2013. A month ago the national average was 3.35%. Mortgage rates have not climbed this quickly since 2009.

The rising mortgage interest rates are decreasing a potential homebuyer’s purchasing power. What this means is that your money will not stretch as far with higher interest rates. One of the first questions a potential homebuyer wants to ask is how much home they can afford, and with rising interest rates that number is becoming less and less. Keep in mind that every 1% increase in rates impacts your borrowing power by over 10%. This means the payment on a $400,000 loan at 4% is the same as a $360,000 loan at 5%.

The increase in mortgage rates also affects those who are looking to refinance. With rising mortgage rates refinancing your home mortgage loan may not make as much sense as it did a month ago. This is why it is very important to lock your interest rates when starting the process of purchasing or refinancing your mortgage loan.

Check out our rates below and call us with any mortgage related questions at (708) 531-8388.

Illinois Mortgage Rates

IL 30 Year Fixed mortgage as of May 31, 2013 3.875%/3.885 APR

Please click this link for APR assumptions and more IL mortgage rates

Indiana Mortgage Rates
IN 30 Year Fixed mortgage as of May 31, 2013 3.875%/3.885 APR

Please click this link for APR assumptions and more IL mortgage rates

Michigan Mortgage Rates
MI 30 Year Fixed mortgage as of May 31, 2013 3.875%/3.885 APR

Please click this link for APR assumptions and more MI mortgage rates

Minnesota Mortgage Rates
MN 30 Year Fixed mortgage as of May 31, 2013 3.875%/3.885 APR

Please click this link for APR assumptions and more MN mortgage rates

Wisconsin Mortgage Rates
WI 30 Year Fixed mortgage as of May 31, 2013 3.875%/3.885 APR

Please click this link for APR assumptions and more WI mortgage rates


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