Looking at the average mortgage rates reported by the MBA, Freddie Mac and Bankrate for this week and the latest report from the FHFA on mortgage rates…
Thank God it’s Friday! And that means it is time to check in on the average mortgage rates reported by the MBA, Freddie Mac and Bankrate.com for this week. Plus I also have some info from the FHFA from their latest mortgage rate report.
National data shows interest rates on mortgages declined slightly in March 2014. FHFA said the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders index was 4.22% for loans closed in late March 2014. This rate declined 0.08% from February to March, according to an index of new mortgage contracts. The index is calculated using FHFA’s Monthly Interest Rate Survey.
The contract rate on the composite of all mortgage loans was 4.22%, unchanged from February.
Interest rates are typically locked in 30-45 days before a loan is closed. Consequently, March data reflects market rates from mid-to-late February. The effective interest rate was 4.37%, down 1 basis point from 4.38% in February. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.
FHFA’s interest rate survey shows the average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 4.51% in March, an increase of 6 basis points. The average loan amount for all loans was $278,500 in March up $2,800 from $275,700 in February.
Check out the chart from FHFA showing mortgage rates:
Sounds great but remember that FHFA’s data is a little dated compared to the reports from the MBA, Freddie Mac and Bankrate.com. Let’s look at what they have to say:
Freddie Mac Reported:
- 30-year fixed-rate mortgages averaged 4.29%
- This is down from last week when it averaged 4.33%
- Last year at this time, 30-year fixed-rate mortgages averaged 3.35%
- 15-year fixed-rate mortgages averaged 3.38%
- This is down from last week when it averaged 3.39%
- Last year at this time, 15-year fixed-rate mortgages averaged 2.56%
Check out the chart showing mortgage rates from Freddie Mac:
The 30-year fixed-rate mortgage fell 4 basis points to 4.44%
The 15-year fixed-rate mortgage fell 3 basis points to 3.51%
The average rate for a 30-year jumbo mortgage fell 2 basis points to 4.45%
The Mortgage Bankers Association Reported:
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) remained unchanged at 4.49%, with points decreasing to 0.38 from 0.50 (including the origination fee) 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) decreased to 4.37% from 4.41%, with points decreasing to 0.14 from 0.34 (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 3.53% from 3.55%, with points decreasing to 0.31 from 0.33 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
The Take Away:
All of this sounds great since mortgage rates either fell or stayed the same. I must remind you that these are the average rates and that mortgage rates change constantly. Since these are the average rates, it may or may NOT reflect what is possible for you.
Plus these rates don’t reflect how the market will react to both the unemployment numbers that came out today or the latest news from the Fed regarding QE. And we still have the unrest in the Ukraine that could impact mortgage rates.
This week’s mortgage rates reflect the latest data on GDP as Frank Nothaft, vice president and chief economist, Freddie Mac said:
Mortgage rates were down slightly following the release of real GDP estimates for the first quarter of the year which rose 0.1 percent and fell well short of market expectations.
The biggest news to me is that the number of mortgages has fallen according to Mike Fratantoni, MBA’s Chief Economist:
Both purchase and refinance application activity fell last week, and the market composite index is at its lowest level since December 2000
Because of the extremely low volume of mortgages and the fact that mortgage rates are STILL at historically low levels, it means that anyone getting a mortgage could get a great deal.
But like I said:
Finding out exactly what is possible means taking the first step and speaking with the lender of your choice.
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.