Boston Area Mortgage Rates Move Higher Again

Average Boston area mortgage rates followed 10-year Treasury yields higher and rose for the third consecutive week last week. At 3.85%, the average 30-year fixed-rate Boston area mortgage rate is just below the high for 2015.

The 15-year fixed Boston area mortgage rates averaged 3.07% with an average 0.6 point last week, up from the previous week when it averaged 3.02%. A year ago at this time, the 15-year fixed rate mortgage averaged 3.29%.

Higher Boston Area Mortgage Rates Mean Less House

Boston area mortgage rates continued to inch upward for the third week in a row.

Higher Boston area mortgage rates will mean more expensive mortgages and less house. Right now, the 30-year mortgage costs nearly a half-percent cheaper than the same mortgage cost a year ago, and more than a full point cheaper than mortgages cost five years ago. If you agree with (almost literally) everyone else that interest rates will rise over the next 12 months, the time to lock in a low rate is now.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.89% last week with an average 0.5 point, down from the previous week when it averaged 2.90%. A year ago, the 5-year Adjustable rate mortgage averaged 3.01%.

The 1-year Treasury-indexed adjustable rate mortgage averaged 2.48% last week with an average 0.4 point, up from the previous week when it averaged 2.46%. At this time last year, the 1-year ARM averaged 2.43%.

The labor market continues to improve with the U.S. economy adding 223,000 jobs in April, a solid rebound from merely 85,000 job gains in March. Also, the unemployment rate dipped to 5.4% in April as the participation rate ticked up to 62.8% and jobless claims were far less than expected.

Pending sales of existing homes in March rose 1.1 percent, according to the National Association of Realtors. The median price of an existing home nationwide was up 7.8 percent from a year earlier.

With just about everyone agreeing that Boston area mortgage rates are moving higher, there’s simply no time like the present to get started looking for a Boston area home.

Also of Interest  Boston Area Real Estate News - June 2015

Get more information as it pertains to Boston area mortgage rates in our section on Boston Mortgage Info to your right under Boston Real Estate Categories.

Remember, we also post tips daily on Twitter and Facebook. Check us out there as well.