Looking at the average mortgage rates for this week plus several interesting charts from the latest NAR Economic and Housing Outlook…
Switching back to a post about mortgage rates BUT I am including several charts from Lawrence Yun’s Economic and Housing Market Outlook presentation at the REALTORS® Conference & Expo earlier this week:
While things are much better than the dark days of just a few years ago, home sales are still lower than the peak. Which leads me to wonder if the peak was an abnormal unhealthy level?
As this chart shows, the home ownership level is much lower than the peak before the crash. While there is no doubt that home ownership has positive benefits for both the owner, society, property values, etc…
What is a healthy sustainable level of home ownership?
As the chart shows, US home prices have recovered nicely after the housing bust. Painful lessons were learned…
This chart really drives home the point that buying a home can be a good financial decision. Rents keep rising but for someone with a mortgage, their payment remains the same…
Remember that buying a home is a complicated and very serious decision that should not be rushed into…
So with that being said, let’s move on to this week’s mortgage rates:
Mortgage Rates This Week
Let take a quick look at the average mortgage rates reported this week:
Freddie Mac on Mortgage Rates:
Freddie Mac reported that mortgage rates reached their highest level since June:
- 30-year fixed rate mortgages averaged 3.54%
- Last week, 30-year fixed rate mortgages also averaged 3.47%
- Last year at this time, 30-year fixed rate mortgages averaged 3.87%
- 15-year fixed rate mortgages this week averaged 2.84%
- Last week, 15-year fixed rate mortgages also averaged 2.78%
- Last year at this time, 15-year fixed rate mortgages averaged 3.09%
Check out the chart from Freddie Mac:
While rates have increased, you have to remember that rates are STILL low!
Bankrate on Mortgage Rates:
Bankrate said that mortgage rates increased this week:
- The average 30 year fixed rate mortgages increased 3.69%
- The average 30 year fixed rate jumbo mortgages increased to 3.74%
- The average 15 year fixed rate mortgage increased to 2.96%
The MBA on Mortgage Rates:
The MBA said that mortage applications decreased again! They also reported that:
The average contract interest rate for 30 year fixed rate mortgages with conforming loan balances ($417,000 or less) was 3.75% for 80% loan-to-value ratio (LTV) loans. This is up from the 3.71% reported last week and the highest since June!
The average contract interest rate for 30 year fixed rate mortgages with jumbo loan balances (greater than $417,000) was 3.74% for 80% LTV loans. This is down from the 3.71% reported last week and is also the highest since June!
The average contract interest rate for 15 year fixed rate mortgages was 3.04% for 80% LTV loans. 3rd times a charm as this is also the highest since June 2016!
The Take Away:
As you can see, mortgage rates, rents AND home prices are increasing.
We do not know how the economy or financial markets are going to react to next week’s election.
And we do not know whether or not the Fed will raise their benchmark rate in December.
No one knows what the future holds…
Only you can say what is right for you.
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.