Fixed mortgage rates fall to a nine-week low

Mortgage rates dropped today. In other words, more inflation means interest rates would need to go higher in order for investors to get the same return on investment. The bottom line is that stable.

These mortgages can be open without breakage costs at pay off or closed with breakage costs being assessed if paid off before maturity of the loan. A borrower can make the most out of their low mortgage rates if they acquire a fixed mortgage. Payments will not increase even if the prime rate does.

 · Mortgage rates today are driven by movements in financial markets worldwide. When the economy heats up, bond price drop, and rates increase. When the economy pulls back, interest rates tend to fall.

WASHINGTON – U.S. long-term mortgage rates fell this week to a 10-month low, spurring on potential homebuyers for the upcoming season. mortgage buyer Freddie Mac said Thursday the average rate on the benchmark 30-year, fixed-rate mortgage eased to 4.41 percent from 4.46 percent last week.

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Interest rates on fixed rate mortgages are unlikely to be the cheapest offers available – which tend to be discounted variable rate mortgages. Fixed rate deals are more expensive because the lender is committing to charging that rate for the whole fixed period – no matter what happens to interest rates generally during this time.

The shorter your fixed-rate loan, the lower your mortgage rate. So 10-year fixed mortgage rates are lower than those on 15-year loans, which are lower than 20-year rates, which are lower than 30-year fixed mortgage rates. You pay much less interest with the shorter loans and lower rates,

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The average rate on the 30-year fixed mortgage is at its lowest level since the week ending July 25, 2013. The 30-year fixed-rate mortgage averaged 4.32 percent with an average 0.7 point for the week ending September 26, 2013, down from last week when it averaged 4.50 percent. A year ago at this time, the 30-year FRM averaged 3.40 percent.

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Use annual percentage rate APR, which includes fees and costs, to compare rates across lenders.Rates and APR below may include up to .50 in discount points as an upfront cost to borrowers. Select product to see detail. Use our Compare Home Mortgage Loans Calculator for rates customized to your specific home financing need.

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