Looking at the average mortgage rates for the week ending July 3 2016…
First, Happy 4th of July!
Second, I am sorry for a month slipping by since my last update on mortgage rates. There has been lots of interesting stuff since my last post like Brexit. So let’s dive in!
Freddie Mac on Mortgage Rates:
Freddie Mac reported mortgage rates dropped to a new low for 2016
- 30 year fixed-rate mortgages averaged 3.48%
- Last week, 30 year fixed-rate mortgages averaged 3.56%
- Last year at this time, 30 year fixed-rate mortgages averaged 4.08%
- 15 year fixed-rate mortgages this week averaged 2.78%
- Last week, 15 year fixed-rate mortgages averaged 2.83%
- Last year at this time, 15-year fixed-rate mortgages averaged 3.24%
Check out the chart from Freddie Mac:
As you can see, mortgage rates are very attractive and have been steadily decreasing.
Bankrate on Mortgage Rates:
Bankrate.com also reported decreasing mortgage rates this week. The exact word they used was “plummeted”.
The average 30 year fixed rate mortgages decreased to 3.61%
The average 30 year fixed rate jumbo mortgages increased to 3.67%
The average 15 year fixed rate mortgage decreased to 2.89%
The MBA on Mortgage Rates:
The MBA also reported decreasing rates this week:
The average contract interest rate for 30 year fixed rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.75% for 80% loan-to-value ratio (LTV) loans. This is down from the 3.76% reported last week.
The average contract interest rate for 30 year fixed rate mortgages with jumbo loan balances (greater than $417,000) increased to 3.74% for 80% LTV loans. This is up from the 3.70% reported last week.
The average contract interest rate for 15 year fixed rate mortgages was 3.02% for 80% LTV loans. This is down from the 3.04% reported last week.
FHFA on Mortgage Rates:
Earlier this week, FHFA released their report on mortgage rates for May. They said:
Nationally, interest rates on conventional purchase-money mortgages decreased from April to May.
The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 3.70% for loans closed in late May
The average interest rate on all mortgage loans was 3.70%
The average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 3.89%
The average loan amount for all loans was $329,500 in May, up from $322,400 in April.
I must point out that FHFA’s report is not as up to date as the others and is covering the time period BEFORE Brexit.
Check out the chart from the FHFA:
The Take Away:
So the fall out from Brexit appears to have put considerable downward pressure on mortgage rates. This week, the financial markets calmed down slightly after the Brexit hysteria.
We did get some good news this week:
- Private sector wages grew 4.9 YoY
- Personal spending grew
- ISM manufacturing index increased
- Case Shiller home price index increased
The big story to keep an eye on is what will happen with the continuing Brexit drama.
However, this upcoming week does hold several non-Brexit reports that could cause rates to move even more.
We will get reports on employment from both the Labor Department and ADP.
Even more important will be the FOMC minutes but these are from before Brexit. So while important, don’t rely on it to indicate what the Fed is up to after Brexit.
We will get 2 reports from ISM and Markit about the service sector. Since our economy is driven by spending, these are important indicators of where the economy is headed.
The fallout from Brexit should continue to keep mortgage rates at the super low levels we are seeing.
If you are thinking about buying a home, it appears the window of opportunity remains WIDE OPEN.
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.