Time once again to check the average mortgage rates reported by the MBA, Freddie Mac and Bankrate for the week of 5-17-2014…
Before we jump into looking at the average mortgage rates reported by the MBA, Freddie Mac and Bankrate.com, I need to give you a little heads up. I will be once again moving some of the stuff about the website around.
I hope this is the last time I have to work on the website for a long long time. The truth is you have to be willing to try new things and also be willing to change when something does not work out as planned. You can’t live in fear of trying new things.
Something that people looking to buy a home should not be afraid of is talking to a lender.
The worst thing that can happen is that the lender says NO. If someone is turned down for a mortgage, they can be happy that they did not take on a HUGE financial commitment that is more than they can handle.
Now On With the Show!
Freddie Mac Reported:
30-year fixed-rate mortgages averaged 4.20% with an average 0.6 point
This is down from last week when it averaged 4.21%
Last year ago this time, 30-year fixed-rate mortgages averaged 3.51%
15-year fixed-rate mortages averaged 3.29% with an average 0.6 point
This is down from last week when it averaged 3.32 %
Last year at this time, 15-year fixed-rate mortgages averaged 2.69%
Check out the chart showing mortgage rates from Freddie Mac:
The 30-year fixed-rate mortgage fell 4 basis points to 4.33%
The 15-year fixed-rate mortgage fell 3 basis points to 3.42%
The average rate for a 30-year jumbo mortgage fell 4 basis points to 4.35%
The Mortgage Bankers Association Reported:
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.39% from 4.43%, with points increasing to 0.22 from 0.21 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. This is the lowest that this type of mortgage has been since November 2013.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) remained unchanged at 4.29%, with points increasing to 0.16 from 0.14 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.48% from 3.52%, with points decreasing to 0.12 from 0.22 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. This is the lowest that this type of mortgage has been since November 2013.
The Take Away:
The dip in mortgage rates is great news as we head into the busiest part of the year for home sales. Mortgage rates fell to a six-month low because of this week’s weak US economic news.
The bad news is that the MBA reported that 50% of their mortgage activity was people refinancing. If you think inventory is tight, this is a sign that many people are NOT planning on selling.
The decrease in mortgage rates certainly makes now a great time for buying a home ( IF buying a home makes sense that is. )
I must point out that these are just the average rates. What is possible for one person is going to be different for some one else.
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.