Affordability remains: Mortgage rates flat in January

While economic and housing market factors will continue to influence mortgage rates, likely pushing them up, they aren't expected to top 4 percent in 2013.

While economic and housing market factors will continue to influence mortgage rates, likely pushing them up, they aren't expected to top 4 percent in 2013. However, Freddie Mac's Primary Mortgage Market Survey for the week ending January 17 revealed rates moved little from record lows set in November and averages posted throughout the start of the year.

The only rate that moved in the last week was the average for 30-year fixed-rate mortgages, which dropped from 3.4 percent to 3.38 percent. When compared to the 3.88 percent average recorded this time a year ago, the current average provides notable affordability to those interested in homeownership in addition to current homeowners refinancing.

According to the survey, the average rate for 15-year FRMs remained at 2.66 percent, as did the rate for 5-year adjustable-rate mortgages, which posted a 2.67 percent average. While the average rate for 15-year FRMs is notably lower than the 3.17 percent average recorded this time last year continue to offer affordability, the average for 5-year ARMs is growing closer to the 2.82 percent seen a year ago.

Though ARMs are a great option for those who can afford higher monthly payments and are looking to pay less in interest over time, real estate records from the Mortgage Bankers Association reported applications for adjustable-rate mortgages only accounted for 3 percent of all activity the week ending January 11.



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