Talking about this week’s average mortgage rates and what Friday’s Jobs Report could mean for buyers…
The heat and humidity have certainly kicked in this week in Anderson. This makes me really enjoy writing about mortgage rates while enjoying the modern miracle of air conditioning…
Freddie Mac on Mortgage Rates:
Freddie Mac reported another week of increasing rates:
- 30 year fixed-rate mortgages averaged 3.66%
- Last week, 30 year fixed-rate mortgages averaged 3.64%
- Last year at this time, 30 year fixed-rate mortgages averaged 3.87%
- 15 year fixed-rate mortgages this week averaged 2.92%
- Last week, 15 year fixed-rate mortgages averaged 2.89%
- Last year at this time, 15-year fixed-rate mortgages averaged 3.08%
Check out the chart from Freddie Mac:
Just like the temperature, mortgage rates have been heating up according to Freddie.
Bankrate on Mortgage Rates:
Bankrate.com contradicted Freddie by reporting slight decreases this week:
The average 30 year fixed rate mortgages decreased to 3.81% from 3.82%
The average 30 year fixed rate jumbo mortgages increased to 3.76% from 3.84%
The average 15 year fixed rate mortgage decreased to 3.05% from 3.06%
The MBA on Mortgage Rates:
The MBA reported mixed results this week:
The average contract interest rate for 30 year fixed rate mortgages with conforming loan balances ($417,000 or less) was unchanged at 3.85% 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) was 3.81% for 80% LTV loans. This is down from the 3.82% reported last week.
The average contract interest rate for 15 year fixed rate mortgages was 3.12% for 80% LTV loans. This is up from the 3.06% reported last week.
The Take Away:
Somewhat mixed results this week but the biggest event this week was Friday’s crappy Jobs Report. In case you missed the news, there were only 38,000 new jobs added in May 2016. This is the weakest job growth in almost 6 years.
It is possible that the weak Jobs Report might stall the Fed from raising rates…
But no one knows what the Fed may do.
I think that we are probably going to continue to enjoy low mortgage rates for a little longer.
But this does not mean buyers should drag their feet.
Buyer need to remember they are NOT the only ones looking at homes today.
While you might waste time, the other buyers may act.
Which means the house you liked gets snatched up by someone else.
And you have to keep the fact that home prices are increasing in the back of your mind.
Of course, there are no guarantees that home prices will keep rising or that mortgage rates will stay super low.
How many times have we heard the “experts’ say that mortgage rates are going to rise?
Maybe the best thing to do is decide if buying a home makes sense for you at this point in your life.
Then talk to a mortgage professional and get a Pre Approval. Think about and determine a monthly payment that fits your lifestyle and budget.
If you have ANY questions about buying or selling real estate in Anderson SC or anywhere else, please shoot me an email!
The Fine Print: As always, I am providing this to you for informational purposes only! I am a blogger and REALTOR in Anderson SC and not a mortgage lender. You should contact the lender of your choice directly to learn more about its mortgage products and your eligibility for such products. My suggestion is that ALL serious legitimate buyers take the first step and talk with a mortgage professional.