Update on mortgage rates reported by the Mortgage Bankers Association and Freddie Mac for the week ending 6-28-2013. Plus mortgage rate charts from Freddie & FHFA…
TGIF it is Friday! After the recent remarks from the Federal Reserve about possibly tapering off on the current QE program mortgages rates have been climbing. There has been plenty of volatility in mortgage rates lately so let’s dive in and see exactly what happened this week!
We’ll start with the good news first. FHFA just reported that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders index was 3.40% for loans closed in late May 2013. The info from FHFA may not show the recent spike in mortgage rates. Check out the chart from the FHFA:
Freddie Mac Reported:
- 30-year fixed-rate mortgages averaged 4.46%
- This is up from last week when it averaged 3.93%.
- Last year at this time, the 30-yearfixed-rate mortgages averaged 3.66%.
- 15-year fixed-rate mortgages averaged 3.50%
- This is up from last week when it averaged 3.04%.
- Last year at this time, the 15-year fixed-rate mortgages averaged 2.94%.
Obviously we are seeing more up to date info from Freddie. Hard to believe that mortgage rates have risen so much and in such a short amount of time. Check out the chart showing 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 4.46% from 4.17%, with points decreasing to 0.35 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 4.52% from 4.23%, with points decreasing to 0.28 from 0.34 (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 4.20% from 3.85%, with points increasing to 0.40 from 0.22 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.55% from 3.30%, with points increasing to 0.43 from 0.39 (including the origination fee) for 80% loan-to-value ratio loans.
Mike Fratantoni, MBA’s Vice President of Research and Economics said:
Mortgage rates increased by the most in a single week since 2011
The Take Away:
First, let me point out that all of these rates and charts are showing the average rates. Exactly what is possible for you depends on your credit and many other factors. But you probably already know that since you have already taken the first step that all serious legitimate buyers take and talked to a lender about getting a Pre-Approval Letter?
Listen, even though rates are steadily climbing, they are still super low. Maybe they are NOT as low as they were last year but they are still low. So low that for many people, owning could be cheaper than renting.
So it really boils down to whether or not you are at the point in your life that owning a home makes sense. Because right now is a great time to buy a home IF it makes sense for you.
How much longer this great opportunity for home buyers is going to continue is hard to say…
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.