Compare Home Equity Loan Rates and Lenders

Mortgage rates remained steady on the week following the Federal Reserve's decision to leave interest rates unchanged at its July meeting.  The Fed pointed to low inflation as a counterbalance to an improved labor market as well as expanding household spending and business investment in its decision to maintain the target range for the federal funds rate at 1.000% to 1.250%.  Industry analysts had expected the Fed to stay put on interest rates at the July meeting so the decision had relatively little impact on mortgage rates on the week.  In welcome news for borrowers and lenders, mortgage rates were relatively flat for the second consecutive week with the rates for some mortgage programs sitting near their low point for 2017.

The interest rate for a 30 year fixed rate mortgage held steady at 3.750% while the interest rate for a 15 year mortgage remained at 2.875%.  The interest rate on a 5/1 adjustable rate mortgage (ARM) was unchanged at 2.875%, staying below the key 3.000% level again.  VA mortgage rates moved .125% lower to 3.250% while FHA mortgage rates were flat at 3.250%, with both programs remaining enticing for home buyers seeking low down payment loan options.  Jumbo mortgage rates held at 3.875% and non-owner occupied mortgage rates remained unchanged at 4.000%.

After a turbulent first quarter of 2017, mortgage rates have been relatively attractive for much of the past two months.  The Federal Reserve's decision to hold interest rates at their current level further stabilized the mortgage market.  Another week of steady rates means we are approaching multiple months of relatively stable and low mortgage rates that have brought increased certainty to the marketplace for both borrowers and lenders.

Despite the relatively steady current mortgage market, mortgage rates remain highly challenging to predict.  The Fed’s decision to leave rates unchanged at its July meeting only bolsters the likelihood that the Fed will raise rates at a future meeting in 2017.  In fact, the Fed reaffirmed its outlook for one more rate increase in 2017 and recent strong labor and economic reports support the prospect of a future rate hike.  Prospective borrowers looking to buy a home or refinance their mortgage may be able to lock in a lower interest rate by acting sooner rather than later, before mortgage rates increase, potentially at an accelerated pace.

Because interest rates change daily, we continue to actively monitor the mortgage market for changes.  Borrowers should check the FREEandCLEAR mortgage rate tables regularly to review customized, updated mortgage rates for lenders in their area.  Our rate tables are free to use and require no personal information.