Looking at the latest average mortgage rates reported by Freddie Mac, Bank Rate and the MBA for the week of 3-26-2016 plus talking about something more important than mortgage rates or real estate…
Just a tad bit noisy around my house as I am having my roof replaced today. Which is a different type of noisy than my stereo cranked up!
So bear with me…
Freddie Mac on Mortgage Rates:
After 3 weeks of increasing mortgage rates, Freddie said they decreased:
- 30 year fixed-rate mortgages averaged 3.71%
- Last week, 30 year fixed-rate mortgages average 3.73%
- Last year at this time, 30 year fixed-rate mortgages averaged 3.69%
- 15 year fixed-rate mortgages this week averaged 2.96%
- Last week, 15 year fixed-rate mortgages averaged 2.99%
- Last year at this time, 15-year fixed-rate mortgages averaged 2.97%
Check out the chart from Freddie Mac:
Chief economist at Freddie Mac Sean Becketti said:
The Federal Reserve’s decision last week to maintain the current level of the Federal funds rate combined with the reduction in their forecast for growth triggered a 3-basis point drop in the 10-year Treasury yield. As a consequence, the 30-year mortgage rate declined 2 basis points to 3.71 percent. However, comments this week by several members of the Fed, including the presidents of the Richmond, San Francisco, and Atlanta banks, indicated that a June rate hike is still on the table.
Bankrate on Mortgage Rates:
Bankrate.com also reported that rates decreased:
The average 30 year fixed rate mortgages decreased to 3.9% from 3.93%
The average 15 year fixed rate mortgages decreased to 3.13% from 3.17%
The average 30 year fixed rate jumbo mortgages decreased to 3.81% from 3.84%
The MBA on Mortgage Rates:
We have 3 out of 3 of the sources I use to track mortgage rates reporting decreases. That’s right, the MBA also said that mortgage rates decreased!
The average contract interest rate for 30 year fixed rate mortgages with conforming loan balances ($417,000 or less) was 3.93% 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 3.85% for 80% LTV loans.
The average contract interest rate for 15 year fixed rate mortgages was 3.18% for 80% LTV loans.
The Take Away:
Do you remember me saying not to panic last week after rates increased for the 3rd straight week?
And this week I am going to say you need to remain calm and don’t get excited.
The decreases reported this week were small. Also rates change every day, sometimes several times a day. Plus these are the average rates and may not reflect what is possible for YOU! You might get a better rate or get a higher rate.
I wrote several round up posts this week that included the economic news that could or should affect mortgage rates.
One thing I did not talk about was the terror attack in Brussels. Because unrest, especially a terror attack, can spook investors. Which means they will start moving their money to someplace they feel is secure. Like US Treasuries.
Which could put downward pressure on mortgage rates OR keep rates from rising as fast as they normally would given all the other conditions in the markets.
But there is something else about the terror attack I want to talk about.
We never know what tomorrow holds.
The world is a messed up place with lots of crazy evil people.
Good innocent people died and their friends and family are grieving.
You must make the most of every chance you get to say or show others how much they mean to you.
What mortgage rates do and pretty much every other thing to do with the real estate market doesn’t amount to anything…
Compared what is really important.
Like the safety, health and happiness of my family and friends.
I am sure YOU feel the same way.
The Fine Print: As always, I am providing this to you for informational purposes only! I am a REALTOR and blogger in Anderson SC 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.