Looking at the latest average mortgage rates reported by Freddie Mac, Bank Rate and the MBA for the week of 3-19-2016 plus much more…
Wow this week flew by. And it appears that Spring has arrived with warmer temps. Which is good news for the real estate market but bad news for me.
It means another year of battling my lawn mower. I could buy another one but that would just be admitting defeat. This man will NOT let a machine beat him.
Enough about that. You didn’t come to hear me cry about lawnmowers. You want to know about the latest mortgage rates and what is happening that has or will affect rates. So let’s dive right in!
Freddie Mac on Mortgage Rates:
Freddie said that mortgage rates increased for the 3rd week in a row:
- 30 year fixed-rate mortgages averaged 3.73%
- Last week, 30 year fixed-rate mortgages average 3.68%
- Last year at this time, 30 year fixed-rate mortgages averaged 3.78%
- 15 year fixed-rate mortgages this week averaged 2.99%
- Last week, 15 year fixed-rate mortgages averaged 2.96%
- Last year at this time, 15-year fixed-rate mortgages averaged 3.06%
Check out the chart from Freddie Mac:
Sean Becketti, chief economist at Freddie Mac said:
Treasury yields increased heading into this week’s FOMC meeting, partially in response to modestly higher inflation readings. 30-year mortgage rates kept pace, rising 5 basis points to 3.73 percent. Nonetheless, at the meeting the Fed confirmed what the market had already concluded and made no change to the Federal funds target. The Fed went further and acknowledged that economic signals have been mixed and that the pace of monetary tightening may be slower than had been assumed at the end of 2015.
Bankrate on Mortgage Rates:
The average 30 year fixed rate mortgages increased to 3.93% from 3.87%
The average 15 year fixed rate mortgages increased to 3.17% from 3.1%
The average 30 year fixed rate jumbo mortgages increased to 3.84% from 3.78%
The MBA on Mortgage Rates:
Just like Freddie and Bankrate, the MBA also reported that all 3 of the rates I track increased!
The average contract interest rate for 30 year fixed rate mortgages with conforming loan balances ($417,000 or less) was 3.94% 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 3.86% for 80% LTV loans.
The average contract interest rate for 15 year fixed rate mortgages was 3.22% for 80% LTV loans.
The Take Away:
First let me say:
Remain Calm and Do Not Panic
While rates have been increasing, the key thing to remember is that they are STILL at historically low levels!
I am NOT saying you should waste time…
And I am NOT saying you should rush anything.
Just take a deep breath.
Just be aware that mortgage rates are increasing. Home prices are increasing. Time is money. And the more time you wait, the more it could cost you.
Despite the FED holding off on raising their benchmark rate, mortgage rates increased. The Fed raising their benchmark rate is a sign that they think the economy is getting stronger.
Yellen even said we can expect only a gradual increases in the federal funds rate. She ALSO said that “Policy is not on a pre set course”.
In other words, the FED does not want to guarantee anything…
You need to remember that the FED does NOT determine what happens with mortgage rates. Which is probably a good thing considering their success with getting the economy healthy…
So what happened with the economy this week?
- Core CPI rose for the 2nd straight month
- Housing starts beat expectations
- Housing permits came in below expectations
- Jobless claims are still low
And what should we keep an eye on next week?
- NAR Existing Home Sales
- FHFA Home Price Index
- Chicago Fed National Activity Index for February
- Richmond Fed Survey of Manufacturing Activity
- Census Bureau and HUD on New Home Sales
- AIA’s latest Architecture Billings Index
- Unemployment claims
- Durable good orders
- Kansas City Fed Survey of Manufacturing Activity
- BLS on Employment and Unemployment for February
Yes it appears that it will be a busy week with real estate, housing and economic news.
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.