Mortgage Interest Rates are Going Up, But They’re Still Awfully Low

We all want mortgage interest rates to remain low. It makes buying and financing a home more affordable. But interest rates have been historically low for a long time. It makes sense that they will start to rise.


And that happened has finally happened.


Financial website Bankrate reported that mortgage interest rates rose on Sept. 29, with rates on both 15-year and 30-year fixed-rate mortgage loans rising a bit.


But here’s the “don’t panic” part: Yes, interest rates did rise. But even with this increase they are still at historic lows, and appear set to remain at these lows for some time.


According to Bankrate, the average interest rate on 30-year, fixed-rate loans stool at 3.82 percent. That is up 3 basis points from a week ago. And a month ago, the average rate on this type of loan stood at 3.77 percent.


Still, even with the increase, the average rate is still under 4 percent on a 30-year, fixed-rate mortgage. It wasn’t that long ago that a rate under 4 percent for such loans was little more than a dream.


The average interest rate on a 15-year, fixed-rate mortgage rose on to 3.03 percent during the week ended Sept. 29. Again, this is up a bit, four basis points from the previous week.


Again, though, this is a historically low rate. And an interest rate that is under 3.10 percent shouldn’t prevent you from buying a home if you’re ready to make this move.


It’s easy to get paralyzed when watching interest rates. It’s natural to want to buy a condo or single-family home in Chicago when interest rates are at their lowest. But small changes in the rates don’t make that much of a difference in the size of your monthly mortgage payment.


So if you’re ready to buy, it’s time to appreciate these low interest rates, even if they are ticking up slowly. Find a Chicago REALTOR® and start your house hunting. Don’t let rates keep you from enjoying the benefits of owning a home.