Time to check out this week’s average mortgage rates. Also looking at what happened this week that affected rates and what to keep an eye on in the coming week…
Freddie Mac on Mortgage Rates:
The news from Freddie Mac is that mortgage rates didn’t change much this week:
- 30 year fixed-rate mortgages averaged 3.59%
- Last week, 30 year fixed-rate mortgages average 3.58%
- Last year at this time, 30 year fixed-rate mortgages averaged 3.67%
- 15 year fixed-rate mortgages this week averaged 2.85%
- Last week, 15 year fixed-rate mortgages averaged 2.86%
- Last year at this time, 15-year fixed-rate mortgages averaged 2.94%
Check out the chart from Freddie Mac:
Bankrate on Mortgage Rates:
Bankrate.com also reported that rates didn’t move much:
The average 30 year fixed rate mortgages increased to 3.75% from 3.72%
The average 30 year fixed rate jumbo mortgages decreased to 3.67% from 3.69%
The MBA on Mortgage Rates:
Just like last week, the MBA said that mortgage applications increased. Not as much as last week’s increase but it does appear that more people are taking advantage of the low rates.
The MBA said that 55.4% of the applications were refis so it isn’t just people buying homes that are taking advantage of the low mortgage rates!
As far as rates, the MBA reported:
The average contract interest rate for 30 year fixed rate mortgages with conforming loan balances ($417,000 or less) was 3.83% for 80% loan-to-value ratio (LTV) loans. This is up from the 3.82% reported last week.
The average contract interest rate for 30 year fixed rate mortgages with jumbo loan balances (greater than $417,000) was 3.77% for 80% LTV loans. This is up from the 3.74% reported last week.
The average contract interest rate for 15 year fixed rate mortgages was 3.06% for 80% LTV loans. This is down from the 3.10% reported last week.
The Take Away:
You may have noticed that several of these rates increased. I would NOT become too concerned as this is the average mortgage rates and we are STILL at incredibly low levels.
Let’s talk about some of this week’s economic news that should have an effect on mortgage rates:
Inital jobless claims fell to the lowest level since 1973. Which is great news BUT…
We do have to remember the the employment situation is one of the many different things the FED is watching. The more the economy and employment numbers improve, the higher the odds that the FED will react.
More good news from this week was that existing home sales increased 5.1% YoY. Despite the low inventory, it is possible we will see a tremendous year in real estate.
The number of homes for sale in the US did increase but that is totally meaningless to most buyers. Buyers are looking in one tiny area compared to the entire US…
The fact that the number of homes for sale across the entire country increased does not help people looking to buy a home in one specific location.
The NAHB reported this week that home builder confidence remained the same. The NAHB said that the housing market is improving but it is a slow pace.
You can either be optimistic or pessimistic about the pace of improvements. Despite my firm grasp on the reality of today’s economy, I choose to be optimistic because of the improving real estate market conditions in the Anderson SC area.
Some bad news came from the Census Bureau and HUD that the number of housing starts and building permits both fell. Despite the low inventory, homes are not being built in the numbers that could be absorbed. Some say this is due to the builders wanting to keep inventory tight as that would keep home prices up.
More bad news was the PMI manufacturing flash index, the Philly Fed survey and Bloomberg Consumer Comfort Index all decreased.
Wile the negatives are nothing to sneeze at, I would not panic…
What a home buyer has to do is look at their own situation and decide what is best for them. Is their job/income secure? Are they planning on staying in the same area for the next 5 to 7 years? Are they truly ready financially to own a home?
Some of the stuff to watch next week:
The Fed statement after their meeting for clues as to what they may be do with their benchmark interest rates
Commerce Department reports on GDP, income and spending, durable good orders
New home sales
S&P/Case Shiller Home Price Index
Dalls Fed, Richmond Fed and Kansas City all release their latest Manufacturing Survey
Consumer sentiment for UofM
Whew lots to watch. I will try to cover it here or on my Twitter
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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.