​Mortgage Rates Today, Monday, Aug. 29: Small Gains, Millennials Tap Equity

Thirty-year fixed and 5/1 ARM mortgages ticked up slightly, while 15-year fixed mortgages remained unchanged on Monday, according to a NerdWallet survey of mortgage rates published by national lenders this morning.

The latest rates continue a monthlong trend of steady rates that haven’t budged much. How low will rates stay — and for how long — is the question.

Older millennials tapping home equity

With home prices gaining strongly in 2016, some homeowners are tempted to tap their homes’ equity more today. In particular, older millennial homeowners, ages 30-34, are twice as likely as baby boomers, ages 55-64, to take out a home equity loan, according to a survey commissioned by Discover Home Equity Loans.

The survey found that among older millennials who own a home (64% of them), 51% have used a home equity loan, compared to only 26% of homeowners who are baby boomers.

Home remodels (45%) and debt consolidation (36%) are the leading reasons homeowners of all ages are taking out home equity loans. But the survey also found that older millennials (42%) are much more likely to use these loans for emergency cash versus just 14% of baby boomers.

“Homeowners who have built equity in their homes have the opportunity to leverage their financial asset to help them pay down debt, update their home or pay for major expenses,” TJ Freeborn, director of operations strategy for Discover Home Equity Loans, said in a news release. “Home equity loans are a viable option homeowners may want to consider, especially because they offer perks like a fixed rate for the life of the loan and the potential for the interest to be tax deductible.”

The NerdWallet Mortgage Rate Index compiles annual percentage rates — lender interest rates plus fees, the most accurate way for consumers to compare rates. Here are today’s average rates for the most popular loan terms:

Mortgage Rates: Aug. 29, 2016

(Change from 8/26)

30-year fixed: 3.63% APR (+0.01)

15-year fixed: 3.05% APR (NC)

5/1 ARM: 3.51% APR (+0.01)

Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published APR with the lowest points for each loan term offered by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

Deborah Kearns is a staff writer at NerdWallet, a personal finance website. Email: dkearns@nerdwallet.com. Twitter: @debbie_kearns.

The article Mortgage Rates Today, Monday, Aug. 29: Small Gains, Millennials Tap Equity originally appeared on NerdWallet.

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