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Mortgage Rates Still Low After Slight Increase

Rates may be on the rise, but it’s still a great time to refinance. Many of our clients have been sending out more direct mail lately due to these rates.

“The most popular mortgage rose to its highest level since late June, after stalling for a month and a half near a record low.” says Holden Lewis in an article posted from Bankrate.

According to Freddie Mac, as of September 15th, 2016 rates are as follows:

  • 30-year fixed-rate mortgage (FRM) averaged 3.50 percent with an average 0.5 point for the week ending September 15, 2016, up from last week when it averaged 3.44 percent. A year ago at this time, the 30-year FRM averaged 3.91 percent.
  • 15-year FRM  this week averaged 2.77 percent with an average 0.5 point, up from last week when it averaged 2.76 percent. A year ago at this time, the 15-year FRM averaged 3.11 percent.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.82 percent this week with an average 0.4 point, up from last week when it averaged 2.81 percent. A year ago, the 5-year ARM averaged 2.92 percent.


Rates are still historically low when looking at the fluctuation in rates from 1971 to now. Looking back at January of this year, rates were at 3.87%, so 3.50% is still a great rate to refinance into. If you are interested at looking at the rates from 1971 to now, Freddie Mac has a great historical chart to look at.

Lets take that into consideration:

  • John Doe has a $200,000 mortgage.
  • At a 4.0% rate, his P&I payment would be roughly $955
  • At a 3.50% rate, his P&I payment would be roughly $898
  • While the savings is only $57 a month, over the life of the loan he could save over $20,000

I liked this quote from The Mortgage Reports that I read earlier this month: “More than 8.7 million U.S. homeowners are potentially eligible to refinance. And, if you’re buying a home, it’s a good time to be looking. Because of how mortgage rates have dropped, if you could afford a $400,000 home in December, today, you can afford a home for $427,000 — an increase of 7% to your purchasing power.”
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About the Author: Jeremy Crosslin

Jeremy manages the operational and customer implementation direction of Influence Direct. Jeremy is a seasoned marketing strategist spending the past 10 years in the direct marketing industry consulting hundreds of clients across multiple industries. Through his direct marketing expertise, Jeremy has increased client acquisition and retention ROI for hundreds of clients via multiple direct marketing channels. 

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