Update on the average mortgage rates reported by the Mortgage Bankers Association and Freddie Mac for the week ending 7-12-2013…
Well we heard from the Federal Reserve regarding Quantitative Easing again and last week’s unemployment numbers also have had an effect on mortgage rates. Let’s look at the average rates reported this week by Freddie Mac and the MBA and what it means for you:
Freddie Mac Reported:
- 30-year fixed-rate mortgages averaged 4.51%
- This is up from last week when it averaged 4.29%
- Last year at this time, 30-year fixed-rate mortgages averaged 3.56%
- 15-year fixed-rate mortgages this week averaged 3.53%
- This is up from last week when it averaged 3.39%
- Last Year at this time, 15-year fixed-rate mortgages averaged 2.86%
Another week Freddie Mac reporting increasing mortgage rates. Check out the chart showing 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 4.68% from 4.58%, with points increasing to 0.46 from 0.43 (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 4.86% from 4.68%, with points decreasing to 0.37 from 0.38 (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 4.37% from 4.27%, with points decreasing to 0.39 from 0.44 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.76% from 3.64%, with points decreasing to 0.41 from 0.44 (including the origination fee) for 80% loan-to-value ratio loans.
The Take Away:
First of all I am going to say that you need to remain calm and not panic that mortgage rates have increased again. While rates are steadily increasing, you have to remember that rates are still super low. Whether or not this remains true depends on If the Fed is Going to Taper QE
Also these are the average rates and you might qualify for a better rate. Or you might have to settle for a higher rate. Exactly what is possible depends on many different factors that your lender will discuss with you. And since ALL serious buyers talk to a mortgage lender BEFORE they start looking at homes, you probably already know the basics about your financial situation.
The negative to all of this is that most buyers are looking at homes in a price range that is set by their monthly payment. So when rates go up, it means the price range the buyers are looking in goes down. This should mean that buyers get the lead out and start making offers sooner rather than later. Especially since waiting could mean they have much less bang for their home buying dollar.
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.