Good Saturday morning to you! Time to once again look at the average mortgage rates reported by Freddie Mac, the MBA and Bankrate. Also I will recap some of the positive news from this week that could impact interest rates and what we will need to watch next week.
So pour yourself a cup of coffee and read on!
Freddie Mac on Mortgage Rates:
Freddie Mac said that mortgage rates are looking favorable for the Spring home buying season:
- 30-year fixed-rate mortgages averaged 3.68%
- Last year at this time, 30-year fixed-rate mortgages averaged 3.86%
- 15-year fixed-rate mortgages this week averaged 2.96%
- Last year at this time, 15-year fixed-rate mortgages averaged 3.10%
Check out the chart from Freddie:
Sean Becketti, chief economist at Freddie Mac said:
The 10-year Treasury yield ended the survey week exactly where it started, however the solid February employment report boosted the yield noticeably on Friday and Monday. Our mortgage rate survey captured the impact of this temporary increase in yield, and the 30-year mortgage rate rose 4 basis points to 3.68 percent.
This marks the second increase this year. Nonetheless, the mortgage rate remains 33 basis points lower than its end-of-2015 level.
Bankrate on Mortgage Rates:
30 year fixed rate mortgages averaged 3.87%
15 year fixed rate mortgages averaged 3.1%
30 year fixed rate jumbo mortgages averaged 3.78%
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 3.89% 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 3.81% for 80% LTV loans.
The average contract interest rate for 15 year fixed rate mortgages was 3.14% for 80% LTV loans.
The Take Away:
Mortgage rates have increased just a hair since the last time I wrote about mortgage rates but I would not freak out. It was a very very small increase and interest rates are STILL at historically low levels.
One positive bit of news that I wrote about in an earlier post is that Jobless claims fell and the 4-week moving average decreased for the 4th straight week. While it is too soon to say, this is a great sign.
Things we need to watch this week:
- Commerce Department’s Retail Spending Report
- Labor Department’s Consumer Price Index
- News from the Fed about another increase in their benchmark interest rate
- The Job Opening and Labor Turnover Supply also from the Labor Department
I am sure I have forgot something else that is related to the real estate market but rest assured I will cover it.
The 2 things for everyone to remember is:
- Rates are low
- Home prices are still increasing
While neither mortgage rates or home prices are increasing at breakneck speed, I certainly would NOT drag my feet.
The limited inventory issue (yes even in the Anderson area) means it can take time to find the right property.
If you have any questions about buying or selling real estate in the Anderson area, please Contact Me!
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.