Update on the average mortgage rates reported by the Mortgage Bankers Association and Freddie Mac for the week ending 4-27-2013…
Hope you did not freak out about the changes around here because of the new domain or website name! It will be but pretty much the same sarcasm and useful info that you know from any of my past websites/blogs.
With that out of the way, let’s look at the average mortgage rates reported by the Mortgage Bankers Association and Freddie Mac:
Freddie Mac Reported:
- 30-year fixed-rate mortgages averaged 3.40%
- This is down from last week when it averaged 3.41%
- Last year at this time, 30-year fixed-rate mortgages averaged 3.88%
- 15-year fixed-rate mortgages this week averaged 2.61%
- This is down from last week when it averaged 2.64%
- A year ago at this time, 15-year fixed-rate mortgages averaged 3.12%
Frank Nothaft, vice president and chief economist, Freddie Mac said:
The housing market is getting a boost with mortgage rates hovering at or near record lows. For instance, existing home sales averaged an annualized pace of 4.94 million over the first three months of this year, the most since the fourth quarter of 2009. More impressively, new home sales topped 424,000 during the first quarter, which was the strongest since the third quarter of 2008. The sales pickup is helping to support house-price gains. For instance, the Federal Housing Finance Agency reported that February marked the thirteenth consecutive month that it has recorded an annual rise in its U.S. house price index, which rose by 7.1 percent in the twelve months through February, the most since May 2006.
The Mortgage Bankers Association Reported:
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 3.65% from 3.67%, with points decreasing to 0.41 from 0.50 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 3.75% from 3.77%, with points increasing to 0.37 from 0.27 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 3.37%, with points increasing to 0.64 from 0.55 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.89% from 2.91%, with points increasing to 0.40 from 0.34 (including the origination fee) for 80% loan-to-value ratio loans.
The Take Away:
Wow! Mortgage rates have dropped again!
Great new for anyone looking to buy. If you have been thinking about buying a home then these super low rates could help you get more for your money. The key thing to remember is these are the average rates and you really need to talk to a lender as one of your first steps in buying a home!
I would suggest that instead of focusing on the big picture of the average mortgage rates that you instead talk to a mortgage professional and see exactly what is possible for you. Especially since everyone is different and you might be able to get a better rate or you might have to pay more.
This is also great news for sellers since an increase in rates can put downward pressure on home prices. However, the stories about limited inventory do NOT always apply to the real estate market right here in Upstate South Carolina. It really depends on the type/price/location of a home in our area. Whether or not there is a limited supply of inventory of homes similar to yours makes HUGE difference in what is possible or realistic.
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.