Update on the average mortgage rates reported by the Mortgage Bankers Association and Freddie Mac for the week ending 6-14-2013…
Switching things up and doing this week’s update on mortgage rates a day early. I am thinking about posting this update on Fridays from now on and would love to hear your opinion about which day is best for you. So with that said, let’s check on the average mortgage rates reported by Freddie Mac and the Mortgage Bankers Association this week:
Freddie Mac Reported:
- 30-year fixed-rate mortgages averaged 3.98%
- This is up from last week when it averaged 3.91%
- Last year at this time, the 30-year fixed-rate mortgages averaged 3.71%
- 15-year fixed-rate mortgages this week averaged 3.10%
- This is up from last week when it averaged 3.03%
- Last year at this time, the 15-year fixed-rate mortgages averaged 2.98%
This is the 6th week in a row that Freddie has reported mortgage rates increasing! Check out the chart below:
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 4.15% from 4.07%, with points increasing to 0.48 from 0.35 (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 4.25% from 4.20%, with points increasing to 0.32 from 0.28 (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 3.81% from 3.76%, with points decreasing to 0.26 from 0.32 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.32% from 3.23%, with points remaining unchanged at 0.38 (including the origination fee) for 80% loan-to-value ratio loans.
The Take Away:
Both Freddie Mac and the MBA reported mortgage rates increasing yet again. I can remember in the not too distant past that when mortgage rates would increase, the Buy-A-Home-Now Cheerleaders would almost have a coronary. Their chants of how the opportunity is slipping by, act now blah blah blah were almost ridiculous. However, it does appear that this time, you need to pay heed.
6 weeks in a row of increasing interest rates is something to think about. If you are going to use a mortgage when you buy a home, you must understand how higher rates will make your monthly payment increase. Which means you may have to lower the maximum price of the homes you are looking at.
So far, the increase in mortgage rates has not put any downward pressure on home prices. As much as I hate that buyers may feel increased pressure to act before rates rise even more, this is good news for you.
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.