Mortgage rates are on the rise across the United States.
According to The Washington Post, mortgage rates have been escalating over the last few weeks. The 30-year fixed-rate average, which is the most popular mortgage product on the hosing market, is just under 5% (4.82%). The last time the 30-year fixed mortgage rate was that high was back in 2011.
Studies show that the average amount it takes to sell a house in the U.S. is $15,200. Bankrate adds that at the current average rate, a buyer would pay principal and interest of $525.87 for every $100,000 borrowed, which is an additional $4.22 per $100,000 compared to the first week of November.
Conversely, the average time to sell a property in many markets right now is between 6 and 12 months. An adjustable rate mortgage (ARM) is a loan with a variable interest rate that can change periodically over the course of the loan term. ARMs typically have an initial fixed rate period followed by an adjustable rate period. The fixed rate period has a wide range and can be as short as one month to as long as 10 years.
The current average rate on an ARM is 4.48%, rising 21 basic points over a seven-day period. ARM loans are best for individuals who expect to sell or refinance before the first or second adjustment. Rates could be much higher when the loan is first adjusted. Additionally, monthly payments on a 5/1 ARM at the current rate would cost $506 for each $100,000 borrowed over the first five years, and could subsequently increase by hundreds of dollars afterwards, depending on the terms of the loan.
As of November 10, 2018, here are the current average mortgage rates for the United States:
- 30-year fixed — 4.82%, up 0.07%.
- 30-year fixed jumbo — 4.84%, up 0.05%.
- 30-year fixed refinance — 4.82%, up 0.06%.
- 15-year fixed — 4.13%, down 0.06%.
If you’re planning on buying a home in the near future, make sure you’re aware of the changing national mortgage rates.