Checking in the average mortgage rates reported by the MBA, Freddie Mac and Bankrate.com for the week ending 3-14-2014…
Well it was a rough week moving over to the new server. I was really wrong about not having any downtime with the blog. It all has to do with DNS settings. All I can say it was a very painful learning experience. I just hope it turns out for the best and visitors like the new search function.
And after the stress I felt this week, I can truly say TGIF. And since it is Friday, that means it is time to check in on the average rates reported by the MBA, Freddie Mac and Bankrate.com for the week. Plus I will look at the latest employment report and what it meant for mortgage rates.
Freddie Mac Reported:
30-year fixed rate mortgages averaged 4.37% with an average 0.6 point
This is up from last week when it averaged 4.28%
Last year at this time, 30-year fixed rate mortgages averaged 3.63%
15-year fixed rate mortgages averaged 3.38% with an average 0.6 point
This is up from last week when it averaged 3.32%
Last year at this time, 15-year fixed rate mortgages averaged 2.79%
Now check out the chart showing mortgage rates from Freddie Mac:
30-year fixed rate mortgages rose 5 basis point to 4.5%
15-year fixed rate mortgages rose 5 basis points to 3.51%
The average rate for a 30-year jumbo mortgage rose 5 basis points to 4.54%
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 4.52% from 4.47%, with points increasing to 0.29 from 0.28 (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 4.41% from 4.37%, with points unchanged at 0.20 (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 3.53% from 3.52%, with points increasing to 0.28 from 0.18 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
The Take Away:
Despite mortgage rates increasing it is not the end of the world. It does mean that buyers have less for their home buying buck which is bad. However, I should not need to remind you that rates are still at historically low levels.
Why Did Mortgage Rates Increase?
It all goes back to last week’s Jobs Report. Yes good news for the economy can be bad news for mortgage rates. The unemployment rate increased for the first time in over a year but the number of jobs increased. It appears the Jobs Report was all that was needed to get rates rising.
We have all heard that mortgage rates will increase in 2014. This week may be the start of a trend. A trend that will cost people more money due to higher mortgage rates.
So what is a buyer to do?
Get the lead out.
I am not saying that buyers should run out in a panic.
Buyers need to remember that time is money in a real estate market with rising home prices AND rising mortgage rates.
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.