Checking in on the average mortgage rates reported by the MBA and Freddie Mac the week ending 11-1-2013. Plus the latest mortgage rate information from FHFA…
As usual, it is Friday so that means it is time to check the average mortgage rates reported by Freddie Mac and the MBA. But first, let’s look at the latest mortgage rate information from FHFA:
Earlier this week, FHFA released their data for the month of September. While this is NOT as up to date as the date from Freddie or the MBA, it is still important. Well, when we are looking at the BIG picture. Anyway..
FHFA reported that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders index was 4.38% for loans closed in late September 2013.
The contract rate on the composite of all mortgage loans was 4.36%, up 11 basis points from 4.25% in August 2013.
FHFA’s interest rate survey shows the average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 4.63% in September 2013.
Check out the chart from FHFA:
Compare where rates are NOW compared to one year ago…
Freddie Mac Reported:
- 30-year fixed-rate mortgages averaged 4.10%
- This is down from last week when it averaged 4.13%
- Last year at this time, 30-year fixed-rate mortgages averaged 3.39%
- 15-year fixed-rate mortgages averaged 3.20%
- This is down from last week when it averaged 3.24%
- Last year at this time, 15-year fixed-rate mortgages averaged 2.70%
Check out the chart from Freddie Mac showing the average mortgage rates:
Again I ask that you compare rates to where they where one year ago…
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 4.33%, the lowest rate since June 2013, from 4.39%, with points decreasing to 0.26 from 0.41 (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 4.36%, the lowest rate since June 2013, from 4.43%, with points increasing to 0.27 from 0.26 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.42%, the lowest rate since June 2013, from 3.51%, with points remaining unchanged at 0.30 (including the origination fee) for 80% loan-to-value ratio loans.
The Take Away:
Both Freddie and the MBA re reporting that mortgage rates have decreased. If you missed yesterday’s post, you may have missed that the MBA think mortgage rates will be above 5% in 2014.
And you probably noticed that I keep saying to compare rates to one year ago. Rates might be higher than last year but they are still historically low. How long this remains true is hard to say.
We know that the Fed is going to look at tapering Quantitative Easing when they meet in December. If they do start to taper, we can expect mortgage rates to start climbing.
But as of today, rates are still super low.
Home prices are increasing but they are still much lower than just a few years ago.
If buying a home now makes sense for you, I would say you are looking at some great home buying conditions!
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.