How to Refinance a Mortgage

Mortgage interest rates started the year without much excitement; however, mortgage rates did drop slightly this week.

The average interest rate for a fixed 30 year mortgage this week fell to 6.21%, this is slightly lower than last weeks interest rate of 6.22% according to one national lender. At this time last year a 30 year fixed rate mortgage averaged 5.77%. As for 15 year fixed rate mortgage loans, this week they averaged 5.76%; this remains the same as last week’s interest rate. At this time last year the fixed 15 year rate was 5.21%.

Five year adjustable rate mortgage loans (ARMs) are slightly down to 5.78% from 5.79% last week. At this time last year the five year interest rate was 5.03%. One year adjustable rate mortgages (ARMs) are at 5.16% this week, down from 5.15% last week. This time a year ago the one year ARM averaged 4.10%.

Financial markets in the United States have been subdued this week, waiting to see what the Fed will do about inflation in 2006. Some analysts believe we will see fewer interest rate hikes during the New Year.