Thirty-year and 15-year fixed mortgage rates, as well as 5/1 ARM rates, are all higher Friday, according to a NerdWallet survey of mortgage rates published by national lenders this morning.
Rates are reacting to the European Central Bank, which left its economic stimulus policy unchanged at its latest meeting Thursday, despite concerns regarding economic growth in the region. Bond traders were disappointed. The result: lower bond prices and higher yields. Mortgage rates followed suit.
Home equity lines of credit staging a comeback
Rising home values and on-time payments by consumers are spurring a rebound in home equity lines of credit. Through the fourth quarter of 2015, HELOC originations were up 111% from the same quarter in 2010, according to a new white paper issued by Experian.
“During the housing boom, home equity lending was heating up, but lenders pulled back significantly as home prices began to fall,” Michele Raneri, vice president of analytics and new business development at Experian, said in a release.
However, $236 billion of HELOC debt is approaching a repayment deadline as loans originated between 2005 and 2008 reach the end of their draw period. HELOCs are issued with a draw period, when customers can tap their home equity as needed, and an end of term, when payment of the principal is due. That repayment deadline is often 10 years after the issuance of the line of credit.
“Many consumers have dealt with repayment well, while others may experience payment shock,” Raneri said. “The best path forward in this situation is for consumers to fully understand this potential payment stress, use resources available to them and to work closely with their lender to navigate these changes. If consumers have good credit and equity in their homes, they most likely can refinance their HELOC.”
The NerdWallet Mortgage Rate Index compiles annual percentage rates — lender interest rates plus fees, the most accurate way for consumers to compare rates. Here are today’s average rates for the most popular loan terms:
Mortgage Rates: Sept. 9, 2016
(Change from 9/8)
30-year fixed: 3.65% APR (+0.05)
15-year fixed: 3.07% APR (+0.02)
5/1 ARM: 3.52% APR (+0.02)
Homeowners looking to lower their mortgage rate can shop for refinance lenders here.
NerdWallet daily mortgage rates are an average of the published APR with the lowest points for each loan term offered by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.