Update on the average mortgage rates reported by the FHFA, Freddie Mac, the MBA and Bankrate for the week of October 2, 2016…
Well another week has passed and it is time again to check in on the average mortgage rates for the week and the various things that may cause rates to move.
I hope you enjoy these posts but remember these are the average mortgage rates and do not always reflect what is realistic or possible for you.
FHFA on Mortgage Rates:
I don’t report the latest from the FHFA every week because they only report on mortgage rates once a month.
Also their report is farther back in time but they have a nice chart showing the big picture:
The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 3.58% for loans closed in late August, down 4 basis points from 3.62% in July.
The average interest rate on all mortgage loans was 3.59%, down 4 basis points from 3.63% in July.
The average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 3.74%, down 6 basis points from 3.80% in July.
The effective interest rate on all mortgage loans was 3.72% in August, down 5 basis points from 3.77% in July. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.
The average loan amount for all loans was $322,700 in August, down $3,000 from $325,700 in July.
Like I said, this info is a little dated BUT that mortgage rate chart speaks volumes.
Freddie Mac on Mortgage Rates:
Freddie Mac reported that mortgage rates decreased this week and that this is the lowest 30 year fixed rate mortgage rate in 10 weeks:
- 30-year fixed rate mortgages averaged 3.42%
- Last week, 30-year fixed rate mortgages also averaged 3.48%
- Last year at this time, 30-year fixed rate mortgages averaged 3.85%
- 15-year fixed rate mortgages this week averaged 2.72%
- Last week, 15-year fixed rate mortgages also averaged 2.76%
- Last year at this time, 15-year fixed rate mortgages averaged 3.07%
Check out the chart from Freddie Mac:
Bankrate on Mortgage Rates:
Bankrate also said that rates decreased this week:
- The average 30 year fixed rate mortgages decreased to 3.54%
- The average 30 year fixed rate jumbo mortgages decreased to 3.54%
- The average 15 year fixed rate mortgage decreased from 2.91% to 2.82%
The MBA on Mortgage Rates:
The MBA reported that mortgage rates increased this week:
The average contract interest rate for 30 year fixed rate mortgages with conforming loan balances ($417,000 or less) was 3.66% for 80% loan-to-value ratio (LTV) loans. This is down from the 3.70% reported last week.
The average contract interest rate for 30 year fixed rate mortgages with jumbo loan balances (greater than $417,000) was 3.64% for 80% LTV loans. This is down from the 3.69% reported last week.
The average contract interest rate for 15 year fixed rate mortgages was 2.95% for 80% LTV loans. This is down from the 2.99% reported last week.
The Take Away:
The main thing that caused rates to drop was the Fed announcing they were leaving their benchmark rate unchanged. This caused investors to put more of their money into government bonds. This usually causes mortgage rates to decrease so no one was really surprised by the decrease.
The other economic news this week included:
- Jobless claims 4-week moving average is down to 256K
- New home sales came in ABOVE expectations
- Conference Board Consumer Confidence Increased
- Case-Shiller Home Price Index UP 5.1% YoY
- Real GDP Increased 1.4% in Q2 of 2016 (Weak)
The stuff to watch this upcoming week includes:
- September’s employment report
- September ISM manufacturing index
- September ISM non-manufacturing index
- Construction spending for August
- ADP employment report
Last but not least, we also have to keep an eye on the various political debates and how the markets will react to what BS is spewed.
I would point once again to the charts showing how rates have fallen over the last year.
We kept hearing how mortgage rates would increase this year.
Yet it never happened.
If it makes sense for you to buy a home, I wouldn’t wait.
Rates may decrease but with home prices still increasing and the tight inventory, sooner rather than later is the best option.
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The Fine Print: As always, I am providing this to you for informational purposes only! I am a blogger and REALTOR in Anderson SC and not a mortgage lender. You should contact the lender of your choice directly to learn more about its mortgage products and your eligibility for such products. My suggestion is that ALL serious legitimate buyers take the first step and talk with a mortgage professional.