Mortgage rates remain low

HSH.com recently shared the results of its Weekly Mortgage Rate Radar, which found no change in mortgage rates from the previous week's record lows. Averages for fixed rates were unchanged, while ARMs showed a slight decline in the week ending September 20. The average rate for a 30-year fixed-rate mortgage remains at 4.21 percent, while the rate for a 5- or 1-year ARM held steady at 3.01 percent.

Keith Gumbiinger, vice president of HSH.com, said the mortgage markets are waiting to see what the Federal Reserve plans to do to boost the economy.

"Whether the Fed will be changing the mix of their investment holdings, reducing the interest rate they pay banks for parking funds or something completely unexpected is the open question at the moment," Gumbinger said.

Because mortgage rates are hovering at historically low levels, the Mortgage Inspection Service is urging all U.S. homeowners to approach refinancing carefully, to avoid being duped by lenders. According to the service, some lenders will lure borrowers in with the promise of low interest rates, but will add on junk mortgage fees or inflate the interest rate once the homeowner is committed.

It is important for borrowers to get a written report from an inspection agency on their lender before they agree to any modification to their loans. A typical inspection and review report will analyze the lender's practices, including title insurance or escrow costs, interest rates and mortgage products offered by the lender and if the offered interest rates are fair.

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