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Mortgage rates at 4.6 this week

It shouldn’t come as a shock to anyone that after a weeks-long decline, followed by a period of very little movement, mortgage interest rates have gone up a notch – and we really shouldn’t complain, says Alan Rosenbaum, chief executive of Guardhill Financial Corp., a Manhattan-based mortgage firm with an office in Woodbury.

Even though the average rate for a 30-year fixed mortgage climbed from 4.51 percent last week to 4.6 percent this week according to Freddie Mac, the rates still have almost nowhere to go but up, he says. “We’re so close to the bottom -- if not at the bottom -- that certainly the recent increase should not be surprising to anyone, nor detrimental to anyone,” Rosenbaum says. “With rates being as low as they are right now, we should be very pleased with where rates are -- and expect rates to rise.”

Locking in a mortgage rate before that happens can lead to significant savings over time, he says. Although there are closing costs and other considerations, he roughly estimates that for a $400,000 home loan, “if you can save a half percent on your rate, that equates to $2,000 per year, times the 30 years of the loan is $60,000.”

Rates are still pretty low by historical standards, Freddie Mac reports – the 30-year fixed rate was 4.57 at this time last year, and it’s 4.6 percent this week. The 15-year fixed rate loan averaged 3.75 percent, up from 3.69 percent last week. It was 4.07 percent a year ago.


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