Update on the average mortgage rates reported by the Mortgage Bankers Association and Freddie Mac for the week ending 5-23-2013…
Freddie Mac Reported:
- 30-year fixed-rate mortgages averaged 3.59%
- This is up from last week when it averaged 3.51%
- Last year at this time, 30-year fixed-rate mortgages averaged 3.78%
- 15-year fixed-rate mortgages averaged 2.77%
- This is up from last week when it averaged 2.69%
- A year ago at this time, 15-year fixed-rate mortgages averaged 3.04%
Frank Nothaft the VP/chief economist at Freddie Mac said:
Fixed-rates moved up for the third consecutive week, with the average 30-year fixed-rate mortgage about a quarter-percentage point higher than three weeks ago. While this may slow some of the refinance momentum, rates are nonetheless low and home-buyer affordability high, which should further aid home sales and construction in coming weeks.
And check out this week’s chart showing the mortgage rates from Freddie:
The Mortgage Bankers Association Reported:
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.78% from 3.67%, with points decreasing to 0.39 from 0.41 (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) increased to 3.93% from 3.87%, with points increasing to 0.36 from 0.25 (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 increased to 3.53% from 3.43%, with points decreasing to 0.13 from 0.16 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages increased to 2.96% from 2.88%, with points increasing to 0.32 from 0.31 (including the origination fee) for 80% loan-to-value ratio loans.
This is the highest mortgage rates that the MBA has reported since March 2013.
The Take Away:
Starting to look like a pattern after several weeks of rising mortgage rates. Just as I wrote about the other day, mortgage rates are rising and may go up even more. But the real point for you to remember is that mortgage rates are still low. The opportunity is there for home buyers.
How long this opportunity is going to be around is hard to say. My suggestion is IF buying a home makes sense for you, then talk to a lender. Get the super important Pre-Approval letter. Once you find out how much you qualify for, then you can set your maximum price by having your lender estimate it based on a monthly payment that fits your budget.
Remember that just because a lender approves you for a certain amount does NOT mean you must spend that amount. You can’t spend more but you can spend less!
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.