While the weather outside is frightful, especially if you live on the East Coast, mortgage rates still remain relatively delightful — even with a slight uptick last week.
Both 15-and 30-year fixed-rate mortgage rates inched upward, as measured by BankingMyWay.com’s Weekly Mortgage Rate Tracker. Fifteen-year rates rose for another week, to 4.51% from 4.47%, while 30-year mortgages increased to 5.1% from 5%.
One-year adjustable-rate mortgages turned the tables on the rest of the mortgage market, falling hard to 3.84% from 4.97%, while three-year ARMs remained level at 4.43%. Five-year ARMs climbed upward again to 4.43% from 4.26%.
There really isn’t anything dramatic that mortgage rate-watchers can point to for the northward veer in interest rates. The Federal Reserve did elect last week to keep interest rates where they are right now — at least until the U.S. economy shows more muscle.
One slightly disturbing piece of news came from the Federal Deposit Insurance Corp., which announced last week that its insurance fund (from which the FDIC pays the money to customers at failed banks) is basically underwater, to borrow a popular phrase these days.According to the FDIC, the fund is in the red by $8.2 billion. The good news is that the bank insurance fund has $23 billion in reserves, and has another $45 billion coming from bank insurance payments. But still ...
Two pieces of news, one from the housing sector and one from the state-by-state unemployment numbers, point to an economy that really is on the mend.