If you’re planning to move to Ohio, now’s the time to start looking. With dropping and lower interest rates available in the state, living in Akron, Canton, Cleveland, Cincinnati, or any other part of Ohio is easier than ever. What are some of the rates being offered in Ohio today? Read on and learn about the current mortgage rates and the expectations for the remainder of 2016.
What Are the Current Mortgage Rates in Ohio?
According to one graph from HSH.com, 30-year-fixed, 15-year-fixed and 5/1 ARM rates have all dropped in February 2016. Listed mortgage rates for Ohio as of February 12 through the 19th, 2016, are 3.75 percent for a 30-year fixed rate, 3.13 for a 15-year fixed rate, and 2.91 for a 30-year 5/1 ARM rate.
How Do Current Mortgage Rates Compare to the National Average?
Nationally, the current mortgage rates for the dates of Feb. 12 through Feb. 19, 2016, were set at 3.73 percent, 3.13 percent, and 2.92 percent, respectively. What that means is that those looking to purchase a home in Ohio may find that current home mortgages are either on par with national averages or a bit more expensive for fixed mortgage rates, while those looking to use a 30-year 5/1 ARM will find that Ohio’s mortgage rates are slightly lower at present.
What Does the Outlook for 2016 Look Like?
The year 2015 was predicted to be one in which Millennials would have their chances to purchase homes at good rates thanks to low interest rates; this group of individuals had finally reached an age where purchasing property was likely, as well. The real-estate market had primarily recovered from the recession, but the predicted purchasing boom didn’t really happen. Why? Millennials are actually waiting longer to buy. That means that they’re also being more patient when it comes to purchasing homes with good interest rates on their mortgages.
In 2016, the housing market is going to boom. It’s expected that the total number of homes told will reach over 6 million across the United States. New homes are being made at a rate of 12 percent per year, and the sale of these new homes is a staggering 16 percent. This is partially why the economy and housing market has recovered so well, but 2016 is still going to be a year for continued growth.
The federal government has raised interest rates for 2016, but that’s not expected to influence mortgage rates much during the year.
For now, if you look at local mortgage rates, you can still find 30-year fixed rates as low as 2.83 percent in the state, while upper mortgage rates seem to be around 3.58 percent. How does this affect you when you buy a home? It determines how much you’re going to pay, so the lower you can find, the better. The lowest rates seem to be with 15-year fixed mortgage rates, either original or refinanced.
The trends show that these rates are increasing on the whole, however. The only rate that has dropped in February is the 15-year jumbo fixed mortgage refinancing rate, which is set at around 3.06 percent.
Rates change on a weekly basis. It can be wise to look at the trends to determine when to get a mortgage, especially because the rates are jumping by around 0.12 or less each week.
For example, in the week of Feb. 14-20, mortgage rates had been set at around 2.72 percent at the lowest, with the highest at 3.86 percent. Shockingly, the largest drop was for the 15-year jumbo fixed mortgage rate; it dropped to only 3.06 percent. This shows the importance of shopping around and even waiting for a better rate, depending on the time you have to buy.
On the whole, consumers expect that mortgage rates are going to rise in 2016, with 57 percent of those interviewed by Fannie May saying they think they will go up, not down, in the next year. That’s probably not likely, though, as the start of 2016 showed the 30-year mortgage rates dropping around 40 basis points and even below the rates they were in 2015. That means lower monthly payments for homes that are purchased in 2016, even if the rates do increase slightly.
According to Freddie Mac, mortgage rates for a 30-year mortgage have fallen six weeks straight and are now approaching the best rates since 1988, making 2016 an excellent year to buy a new home or even to refinance one you already have. FHA and VA mortgages are expected to be well below the 3.5 percent average mortgage rate for the United States.
How does this compare in Ohio? If you’re borrowing at a limit of $417,000, you’d pay around 85 percent less than you did at the beginning of 2016, thanks to the average drop in interest rates.
2 Point Highlight
Current Mortgage Rates in Ohio
Listed mortgage rates for Ohio as of February 12 through the 19th, 2016, are 3.75 percent for a 30-year fixed rate, 3.13 for a 15-year fixed rate, and 2.91 for a 30-year 5/1 ARM rate.
What Does the Outlook for 2016 Look Like?
According to Freddie Mac, mortgage rates for a 30-year mortgage have fallen six weeks straight and are now approaching the best rates since 1988, making 2016 an excellent year to buy a new home or even to refinance one you already have.
