Wondering what mortgage rates were this week? Let’s look at the average rates reported by Freddie Mac, the MBA and Bankrate for the week of 6-20-2014…
Freddie Mac Reported:
- 30-year fixed rate mortgages averaged 4.17% with an average 0.6 point
- This is down from last week when it averaged 4.20%
- Last year at this time, 30-year fixed rate mortgages averaged 3.93%
- 15-year fixed rate mortgages averaged 3.30% with an average 0.5 point
- This is down from last week when it averaged 3.31%
- Last year at this time, 15-year fixed rate mortgages averaged 3.04%
Check out the chart showing mortgage rates from Freddie Mac:
The 30-year fixed-rate mortgage inched down 1 basis point to 4.33%
The 15-year fixed-rate mortgage rate rose 1 basis point to 3.44 %
The average rate for a 30-year jumbo mortgage fell 3 basis points to 4.38%
The Mortgage Bankers Association Reported:
The average contract interest rate for 30-year fixed rate mortgages with conforming loan balances ($417,000 or less) increased to 4.36% from 4.34%, with points increasing to 0.24 from 0.16 (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) increased to 4.32% from 4.27%, with points decreasing to 0.09 from 0.12 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
The average contract interest rate for 15-year fixed rate mortgages increased to 3.50% from 3.43%, with points decreasing to 0.16 from 0.22 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
The Take Away:
You are probably relieved to see that all of the average mortgage rates did not increase like they did last week. The real question is how long will we continue to enjoy these super low rates?
It is possible that the decrease in this week’s average mortgage rates was due to the crappy numbers for housing starts and building permits that came out this week.
Or it could be the unrest in Iraq.
Or the situation in Ukraine.
Or the ECB cutting their interest rates which has meant that investors are turning to US bonds.
We did have the latest reduction in the Fed’s QE that normally would have meant an increase in mortgage rates. Yet it did not lead to an increase in mortgage rates.
So how much longer are people going to enjoy historically low mortgage rates?
Will the predictions for increasing mortgage rates this year prove to be true?
I am not one for making predictions. If I were looking to buy a home, I would rather buy when I found a home that fit my budget, needs & wants instead of trying to time the mortgage market.
Especially since home prices are still rising.
We know that as the economy improves, it means that mortgage rates should increase. Mike Fratantoni, MBA’s Chief Economist said:
Interest rates increased relative to the previous week, as incoming economic data continues to suggest a pickup in the pace of growth
Fratantoni also pointed out that some lenders are still reporting home buyers are unable to find a property due to the tight inventory in some markets. This is true for our real estate market in certain price ranges or areas. It can be frustrating but there are ways to get the upper hand on the other buyers in the Anderson area.
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.