Mortgage Rates 6-25-2013

Primary mortgage rates continued their rapid upward climb today, although rates showed some signs of slowing. The conventional 30-year fixed best execution rate is now a shocking 4.59%. Mortgage rates began a sudden increase last week following a much-anticipated announcement by the Fed. While the large rise in rates took most people by surprise, lenders today encourage borrowers to keep everything in perspective.

"When you are feeling angst over interest rates, bring it down to the basics and take a good look at what the rate increase actually means," advised mortgage lender Barb Lanis of First Advantage Mortgage. She added, "Sometimes, one can get hung up on the actual rate, rather than the simplicity of what this means to a monthly payment...If the numbers work for your loan and you are comfortable with the payment, why add grief to purchasing a home or refinancing?"

Primary Mortgage Markets

30-year fixed-rate mortgage (FRM) interest rates climbed 0.10%, averaging 4.59% and setting a new record for the 52-week high.

The 15-year FRM rates also grew by 0.10% to 3.75%, achieving a new 52-week high.

FHA 30-year fixed mortgage rates also rose, increasing 0.12% to 4.37% and setting at a new 52-week high.

Nonconforming conventional loans also showed their elasticity, rising 0.08% to 4.62% and setting a new 52-week high.

Adjustable-rate mortgage (ARM) Loans followed this week's trend and rose by .01% to 3.10%, setting a new 52-week high.

Advice for borrowers:  Are you in the process of purchasing a home? Get started by monitoring the secondary mortgage market to know when to lock. Mortgage professionals are predicting a volatile market and escalating rates, a trend that has recently been reflecte by upward movement in mortgage rates. Be sure to establish your own minimum and maximum limits to lock in on, in order to receive a rate that matches your personal financial goals.

Gretchen Wegrich

Gretchen Wegrich is an editor at Lender411. She specializes in mortgage basics, personal finance and green living. She graduated with a bachelor's degree in writing from University of California, San Diego and previously worked at the Santa Cruz Sentinel. Contact her at gretchen@lender411com.