Mortgage rates are up for the fifth straight week but something the news doesn't always point out is they are down over a year ago. The 30-year fixed-rate mortgage averaged 6.46% as of April 2, up from last week when it averaged 6.38% (according to the Primary Mortgage Market Survey published by Freddie Mac .) A year ago at this time, it averaged 6.64%. The 15-year fixed-rate mortgage averaged 5.77%, up from last week when it averaged 5.75%. A year ago at this time, it averaged 5.82%.
Historically rates average around 7 percent. With that in mind, rates are not out of line. Having lived through the COVID rates people, unrealistically, focus on wanting a 3 or 4 percent mortgage rate. Most likely that will not happen again. Certainly shop for the best mortgage rate, because they do differ, but don't let a rate stop you from moving ahead with your real estate goals. Start paying down the principal now and you can always refinance should rates come down enough to warrant it in the future. Why continue to pay off someone else's asset by paying rent?
