Update on the average mortgage rates reported by the Mortgage Bankers Association and Freddie Mac for the week ending 7-26-2013…
Good news for buyers this week from both the MBA and Freddie Mac. Let’s dive right in and check out the average mortgage rates they reported this week!
Freddie Mac Reported:
- 30-year fixed-rate mortgages averaged 4.31%
- This is down from last week when it averaged 4.37%
- Last year at this time, 30-year fixed-rate mortgages averaged 3.49%
- 15-year fixed-rate mortgages this week averaged 3.39%
- This is down from last week when it averaged 3.41%
- A year ago at this time, the 15-year fixed-rate mortgages averaged 2.80%
Frank Nothaft, vice president and chief economist, Freddie Mac said:
Mortgage rates eased for the second consecutive week which should help to alleviate market concerns of a slowdown in the housing market. Thus far, existing home sales for June were the second highest since November 2009 and new home sales were the strongest since May 2008. In addition, the low inventories of homes for purchase are putting upward pressure on house prices.
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) decreased to 4.58% from 4.68%, with points decreasing to 0.40 from 0.42 (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 4.66% from 4.81%, with points increasing to 0.41 from 0.40 (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 decreased to 4.28% from 4.38%, with points increasing to 0.33 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 decreased to 3.63% from 3.70%, with points decreasing to 0.35 from 0.38 (including the origination fee) for 80% loan-to-value ratio loans.
The Take Away:
Like I said this is great news for buyers. But of course this is the average mortgage rates and exactly what is possible for you may be different. You might be do better or you may have to settle for paying a higher rate. Since one of the first steps in buying a home is talking to a lender, it really isn’t that hard to find out where you stand.
Another thing to remember is that while rates are higher than they were just a year ago, they are still super low. Which gives buyers more home buying power. However, we also know that some time in the future the Fed is going to start “tapering” Quantitative Easing which will cause mortgage rates to increase.
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.