Home loans are still getting more expensive than other forms of credit, but the loan rate is about to rise again.
Posted on September 29, 2018 at 10:54:02, 5 commentsToday, the average home loan rate jumped to 2.5% from 2.4%.
That’s up from 2% last year, according to Freddie Mac, which tracks home loans.
Home equity lines up with the overall rate of home loan interest for the first time since the Great Recession, according a Reuters analysis.
Home equity loans, also known as first lien loans, are a form of financing available to first-time home buyers and new buyers.
They offer low down payments, but a mortgage interest rate of about 5%.
The Federal Reserve raised the rate on the first laning loans in October and the Federal Housing Finance Agency raised rates for other loans last month.
The interest rate on all loans rose on September 27.
The rate rise came after a rise of about 0.7 percentage points last month, Reuters reported.
The rate has since fallen 0.8 percentage points, according with the data.
In October, the first-lien loan rate fell by about 0,1 percentage points to 2% from 3.1% in September.