Quick note about the recent website changes then moving on to check the average mortgage rates for the week of 5-24-2014…
Good morning! Welcome back to the latest version of Ugly But Honest and hopefully this will be the last change to the website for a long long time. I still have to do lots of work with behind the scenes stuff but that should not affect you. I like the new search function but the home page still needs some work.
Stay tuned and if you can think of anything that needs work please Contact Me! Unless you are wanting to give me a sales pitch. Then you can save yourself the time since it will get you no where!
Well enough about the changes. It is time once again to check the average mortgage rates reported by the MBA, Freddie Mac and Bankrate.com for the week:
Freddie Mac Reported:
- 30-year fixed-rate mortgages averaged 4.14%
- This is down from last week when it averaged 4.20%
- Last year at this time, 30-year fixed-rate mortgages averaged 3.59%
- 15-year fixed-rate mortgages averaged 3.25%
- This is down from last week when it averaged 3.29%
- Last year at this time, 15-year fixed-rate mortgages averaged 2.77%
Check out the chart showing mortgage rates from Freddie Mac:
The 30-year fixed-rate mortgage fell 4 basis points to 4.29%
The 15-year fixed-rate mortgage fell 4 basis points to 3.38%
The average rate for a 30-year jumbo mortgage fell 4 basis points to 4.31%
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 4.33%, the lowest rate since November 2013, from 4.39%, with points decreasing to 0.20 from 0.22 (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 4.24%, the lowest rate since May 2013, from 4.29%, with points decreasing to 0.1 from 0.16 (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 3.43%, the lowest rate since October 2013, from 3.48%, with points increasing to 0.15 from 0.12 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
The Take Away:
Freddie Mac said that these are the lowest mortgage rates so far in 2014. This is the 4th consecutive week that Freddie has reported declining mortgage rates.
Mike Fratantoni, MBA’s Chief Economist said:
Renewed concerns about the state of the global economy, particularly in Europe, led to a flight to quality to US Treasury securities, thereby pushing interest rates down in the US. Rates on conforming loans hit 6 month lows and jumbo rates hit 12 month lows.
Bankrate.com also said this is the 4th consecutive week of falling mortgage rates and this should give home buyers some extra time to grab a low rates.
All this sounds great but as always 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.
And just because mortgage rates are STILL at historically low levels does not change the most important question that home buyers must answer FIRST:
Does Buying a Home Make Sense for You?
Unlike some REALTORs that always preach that it is a great time to buy a home, instead I like to present the facts. Yes right now it is good time to buy a home.
But is it a good time for you?
Maybe it is or maybe it isn’t.
How long do you plan on staying in the home?
How much money have you saved for closing costs and down payment?
How is your credit?
How secure is your income?
I could go on and on with questions that home buyers should ask themselves BEFORE they start looking. Buying a home is probably the most serious financial decision that someone can make and should not be rushed into.
And there is much more to owning your home than just the numbers. It goes MUCH deeper than just the dollars and cents.
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.