Update on the average mortgage rates reported by the Mortgage Bankers Association and Freddie Mac for the week ending 6-21-2013…
If you are a regular reader then you know that mortgage rates have been increasing for the past several weeks. Considering how higher mortgage rates can really affect both buyers and sellers, it should go without saying this is one very important topic. So let’s check on the average rates reported this week by the MBA and Freddie Mac:
Freddie Mac Reported:
- 30-year fixed-rate mortgages averaged 3.93%
- This is down from last week when it averaged 3.98%
- A year ago at this time, 30-year fixed-rate mortgages averaged 3.66%
- 15-year fixed-rate mortgages averaged 3.04%
- This is down from last week when it averaged 3.10%
- Last year at this time, 15-year fixed-rate mortgages averaged 2.95%
Check out the chart from Freddie Mac showing mortgage rates:
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 4.17% from 4.15%, with points decreasing to 0.41 from 0.48 (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) decreased to 4.23% from 4.25%, with points increasing to 0.34 from 0.32 (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 3.85% from 3.81%, with points decreasing to 0.22 from 0.26 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.30% from 3.32%, with points increasing to 0.39 from 0.38 (including the origination fee) for 80% loan-to-value ratio loans.
The Take Away:
While there are some mixed signals this week, you better touch base with your mortgage professional ASAP. Why?
Because of the news from the Federal Reserve earlier this week regarding their plans regarding QE. Rates have really jumped since Bernanke confirmed that the Fed is ready to slow down QE. Plus the rise in mortgage rates may be a long term trend.
Hard to say for sure since predicting the future has never been my thing. I had always heard that increasing rates put downward pressure on home prices. However consider this quote from David Blitzer in a recent article on Housingviews.com:
At the top of the bubble — 2006 to 2009 — mortgage rates were volatile but little changed and prices surged and then fell. Since 2009 mortgage rates are falling while housing prices struggled to recover. Looking at the last 12-1/4 years, no strong cause and effect relation can be seen. While mortgage rates jumped in the last month, there’s more to housing than simply mortgage rates.
There is no doubt that there is more to owning a home than just the numbers. But the numbers have to work.
Rising mortgage rates means less bang for your home buying buck. Mortgage rates can and will change quickly. Dragging your feet can make a HUGE difference in the rate you pay. Which is why I said you better talk to your mortgage lender ASAP.
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.