St Louis mortgage interest rates are on the rise and hitting levels we have not seen in the past year and a half and the 3.x percent rates we have become somewhat accustomed to are gone. However, before you panic or think the housing market is headed toward another crash as a result, you should keep in mind that todays rates (see below for current rates) of about 4.5 percent for a 30 year fixed rate mortgage is still lower than the average monthly mortgage interest was for more than 40 years proceeding 2012. Granted, looking back, 2012 was the year to buy a house with an average interest rate of 3.66 percent and lower home prices, but hindsight is always 20-20. The bottom line is, instead of worrying about the recent increases in mortgage rates home buyers should be thankful that rates remain at historic lows.
Current St Louis Mortgage Interest Rates From Tyler Frank, Paramount Mortgage:
- 30 yr. fixed – 4.5%
- 15 yr. fixed – 3.5%
- FHA 30 yr. fixed – 4.125%
- 5 yr. ARM – 3.375%
- 7 yr. ARM – 3.75%
- 10 yr. ARM – 4%
(rates shown are as of 8/02/13 and reflect a minimum credit score of 760 with 20% down)
With regard to where interest rates are headed, St Louis mortgage banker Tyler Frank with Paramount Mortgage said “I personally believe that rates are going to stay essentially where they are for the remainder of the year. Could see a quarter percent move either way, however today’s rates are the new normal. I believe the days of 3.5% for a 30 yr. fixed are likely over, with 4.25-4.75% the likely range over the near term.”
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