Checking in on the average mortgage rates reported by the MBA and Freddie Mac the week ending 10-25-2013…
Time to check in on the average mortgage rates reported this week by Freddie Mac and the Mortgage Bankers Association:
Freddie Mac Reported:
- Fixed mortgage rates dropped to the lowest level in 4 months!
- 30-year fixed-rate mortgages averaged 4.13%
- This is down from last week when it averaged 4.28%
- Last year at this time, 30-year fixed-rate mortgages averaged 3.41%
- 15-year fixed-rate mortgages this week averaged 3.24%
- This is down from last week when it averaged 3.33%
- Last year at this time, 15-year fixed-rate mortgages averaged 2.72%
Frank Nothaft, vice president and chief economist, Freddie Mac said:
Mortgage rates slid this week as the partial government shutdown led to market speculation that the Federal Reserve will not alter its bond purchases this year. The weak employment report for September added to this expectation.
Check out the chart from Freddie Mac showing the average mortgage rates:
The Mortgage Bankers Association Reported:
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.39%, the lowest rate since June 2013, from 4.46%, with points increasing to 0.41 from 0.31 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.43%, the lowest rate since June 2013, from 4.51%, with points increasing to 0.26 from 0.15 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.51%, the lowest rate since June 2013, from 3.53%, with points decreasing to 0.30 from 0.31 (including the origination fee) for 80% loan-to-value ratio loans.
The Take Away:
We can rejoice that mortgage rates have dropped again. However I must point out that these are the average mortgage rates and do not reflect what is possible for everyone. And as I mentioned in yesterday’s post, Freddie is predicting that mortgage rates will increase to 4.3% by the end of the year. Something else from yesterday’s post is that Fannie Mae is raising their down payment requirements in several weeks.
I am sure you realize the tremendous opportunity in real estate today because of the historically low mortgage rates. Since rates and lending requirements change often and fast, buyers must make educated decisions. Which means discussing their mortgage options with their lender at the beginning of their search for a new home.
As always, I am providing this to you for informational purposes only! I am not a mortgage lender and you should contact the lender of your choice directly to learn more about its mortgage products and your eligibility for such products.