Mortgage rates climb nearly half a percentage point in a month

Credit: Bill Lackey

Credit: Bill Lackey

People in the market to buy a home in the Miami Valley are seeing higher mortgage rates this week.

A local mother meeting with a mortgage officer in Beavercreek said she hopes to get a good rate on a condo for her daughter.

"This being her first experience with home-buying we want to do the best we can for her to have affordable living," said Denise Detrick.

Mortgage rates inched up to an average of 4.30 percent on a 30-year fixed, up nearly a half a percentage point from last month, according to Bankrate.com.

The average rate for a 15-year fixed mortgage increased to 3.63 percent, up 17 basis points from last week.

The increase is because of bond yield markets rising and overall positive economic news, according to David Wills, Dayton Mortgage Bankers Association president.

"Good economic news isn't necessarily good news for people looking to buy homes and wanting the lowest rates," he said.

However, these rates are still near historic lows.

"I always think it's a good idea to lock in your interest rate. Interest rates are too unpredictable, because things can happen nationwide and worldwide that can influence those rates," Wills said.

There are ways you can help keep your rate low including making a larger down payment and working on improving your credit score, according to Wills.

* Bankrate.com has these additional recommendations:

* Consider an adjustable rate mortgage if you plan to move in the next few years,

* Keep detailed employment records,

* Shop around.

News Center 7 consumer reporter Rachel Murray talks to a local mortgage expert to find out what consumers need to know about the mortgage rate increase and how you can help keep your rate low.

Watch today on WHIO-TV at 5 p.m.

About the Authors