Looking at the latest average mortgage rates, what happened this week that could affect rates and what to watch in the coming week…
Well it has been too long since I wrote an update on mortgage rates. Still not over my cold and still working on the finishing touches for the blog so not back to 100% on writing like I want.
Plus I was recruited to help with baby siting today so that REALLY makes it hard to get much done. We just finished a magnificent crayon drawing with some leaves that we found in the yard pasted on to give it some extra umph. I am sure the Smithsonian will be calling next week to see if our latest creation can be added to their collection of fine art…
So while I have a moment, let’s look at the latest mortgage rates reported by Freddie, the MBA and Bankrate. Plus just like the last Mortgage Rate Update, I have the latest report from FHFA:
FHFA on Mortgage Rates:
The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 3.98% for loans closed in late January.
The average interest rate on all mortgage loans was 3.97%
The average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 4.23%
The effective interest rate on all mortgage loans was 4.10% in January
The average loan amount for all loans was $310,400 in January
Check out the mortgage rate chart from FHFA and pay particular attention to the difference between this January and last January:
Freddie Mac on Mortgage Rates:
Freddie Mac said:
- 30-year fixed-rate mortgages averaged 3.62%
- Last year at this time, 30-year fixed-rate mortgages averaged 3.80%
- 15-year fixed-rate mortgages this week averaged 2.93%
- Last year at this time, 15-year fixed-rate mortgages averaged 3.07%
Check out the chart from Freddie:
Bankrate on Mortage Rates:
30 year fixed rate mortgages averaged 3.8%
15 year fixed rate mortgages averaged 3.09%
30 year fixed rate jumbo mortgages averaged 3.7%
The MBA on Mortgage Rates:
The average contract interest rate for 30 year fixed rate mortgages with conforming loan balances ($417,000 or less) was 3.85% for 80% loan-to-value ratio (LTV) loans.
The average contract interest rate for 30 year fixed rate mortgages with jumbo loan balances (greater than $417,000) was 3.80% for 80% LTV loans.
The average contract interest rate for 15 year fixed rate mortgages was 3.12% for 80% LTV loans.
The Take Away:
As I say every time, this is talking about the AVERAGE mortgage rates and does NOT reflect what is possible or realistic for everyone. It is VERY possible you will have a different rate than the average.
With that being said, the decrease in mortgage rates is great news. More great news came from NAR and Case-Shiller this week. NAR reported that existing home sales increased and Case-Shiller reported that home prices increased 5.7% YoY.
While this is talking about the entire US, it is still a good sign for the coming year. One negative real estate headline this week was that new home sales decreased.
Real GDP and durable goods orders both improved. However the ISM Manufacturing Index Flash came at the lowest reading in three years. The ISM non-manufacturing index fell to nearly a two-year low in January.
It is quite possible that the weak economy will continue to keep mortgage rates at favorable levels for now…
The big thing we need to watch is Friday’s employment report to get a better idea of where the economy is or may be headed.
Other things to watch this coming week are construction spending, the Fed’s Beige Book and ADP’s employment report.
The Fine Print: As always, I am providing this to you for informational purposes only! I am a REALTOR 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.