Checking in the average mortgage rates reported by the MBA, Freddie Mac and Bankrate.com plus info from FHFA on mortgage rates in January 2014…
Time for my tradition of checking the average mortgage rates reported by the MBA, Freddie Mac and Bankrate.com for the week ending 2-28-2014. Plus this week I have some information and a chart from FHFA on mortgage rates in January 2014. So let’s dive right in!
This week, FHFA released their report on mortgage rates for January 2014. While not as up to date, it is good for a broader view of what mortgage rates are compared to the past. FHFA reported:
Contract mortgage interest rates increased 0.11% from December 2013 to January 2014
The contract rate on the composite of all mortgage loans was 4.36%, up 11 basis points from 4.25% in December 2013
The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders index was 4.37%
Interest rates are typically locked in 30-45 days before a loan is closed. Consequently, January 2014 data reflect market rates from mid-to-late December. The effective interest rate was 4.52%, up 12 basis points from 4.40% in December 2013. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.
FHFA’s interest rate survey shows the average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 4.67% in January 2014, an increase of 13 basis points. The average loan amount for all loans was $284,400 in January up $6,800 from $277,600 in December 2013.
Check out the chart showing mortgage rates according to FHFA:
Freddie Mac Reported:
- 30-year fixed rate mortgages averaged 4.37%
- This is up from last week when it averaged 4.33%
- Last year at this time, 30-year fixed rate mortgages averaged 3.51%
- 15-year fixed rate mortgages this week averaged 3.39%
- This is up from last week when it averaged 3.35%
- Last year at this time, 15-year fixed rate mortgages averaged 2.76%
Frank Nothaft, vice president and chief economist, Freddie Mac said
Mortgage rates edged up with new home sales exceeding expectations and rising to a seasonally adjusted pace of 468,000 units in January, the strongest annual rate since July 2008. The 9.6% increase in new home sales for January followed an upward revision of 13,000 units in December. The S&P/Case-Shiller® 20-city composite house price index rose 13.4% over the 12-months ending in December 2013.
Check out the chart from Freddie Mac:
Another week of rising mortgage rates. Let’s see what the MBA and Bankrate.com are reporting.
30-year fixed rate mortgages fell 1 basis point to 4.48%
15-year fixed rate mortgages fell 2 basis points to 3.50%
The average rate for a 30-year jumbo mortgage rose 2 basis points to 4.51%
The Mortgage Bankers Association Reported:
The average contract interest rate for 30-year fixed rate mortgages with conforming loan balances ($417,000 or less) increased to 4.53% from 4.50%, with points decreasing to 0.26 from 0.34 (including the origination fee) 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) increased to 4.47% from 4.45%, with points decreasing to 0.11 from 0.14 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
The average contract interest rate for 15-year fixed rate mortgages increased to 3.56% from 3.55%, with points increasing to 0.33 from 0.25 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
The Take Away:
It might appear to many that the rising rates is scary. But the really scary thing is that the MBA reported that the number of purchase applications decreased to the lowest level since 1995.
Yes mortgage rates have risen in the past year.
Many have predicted that mortgage rates will increase even more in 2014.
What people are forgetting is that mortgage rates are still at historically low levels. Instead of sitting around in some sort of a pity party because they missed the lowest rates, buyers should be getting their butts in gear!
While the historically low mortgage rates are still available…
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.