Looking at mortgage rates for the week ending July 31 2016…
It has been a few weeks since I wrote about the average mortgage rates. So let’s look at the mortgage rates for the week ending 7-31-2016!
Freddie Mac on Mortgage Rates:
This week, Freddie Mac reported mortgage rates increased slightly.
No need to panic as you can see rates are still very low:
- 30-year fixed rate mortgages averaged 3.48%
- Last week, 30-year fixed rate mortgages averaged 3.45%
- Last year at this time, 30-year fixed rate mortgages averaged 3.98%
- 15-year fixed rate mortgages this week averaged 2.78%
- Last week, 15-year fixed rate mortgages averaged 2.75%
- Last year at this time, 15-year fixed rate mortgages averaged 3.17%
Check out the chart from Freddie Mac:
Sean Becketti, chief economist, Freddie Mac said:
The 10-year Treasury yield remained flat this week in anticipation of the Fed’s July policy meeting. Mortgage rates, on the other hand, rose another 3 basis points to 3.48 percent. Nonetheless, home sales continue to benefit from the persistently low mortgage rates with June’s new home sales coming in at an annualized rate of 592,000 homes — its fastest pace since 2008.
Bankrate on Mortgage Rates:
Bankrate.com also reported some increases this week.
Again, do not panic:
- The average 30 year fixed rate mortgages was 3.63%
- The average 30 year fixed rate jumbo mortgages was 3.69%
- The average 15 year fixed rate mortgage was 2.89%
The MBA on Mortgage Rates:
The MBA reported increasing rates and I will again say you should not panic:
The average contract interest rate for 30 year fixed rate mortgages with conforming loan balances ($417,000 or less) increased to 3.69% for 80% loan-to-value ratio (LTV) loans. This is up from the 3.65% reported last week.
The average contract interest rate for 30 year fixed rate mortgages with jumbo loan balances (greater than $417,000) increased to 3.67% for 80% LTV loans. This is up from the 3.66% reported last week.
The average contract interest rate for 15 year fixed rate mortgages was 2.94% for 80% LTV loans. This is up from the 2.90% reported last week.
The Take Away:
I said Don’t Panic several times despite mortgage rates rising this week.
I want you to understand 2 things:
- These Are the AVERAGE Rates
- Mortgage Rates are STILL Very Low
The low rates are great news for both real estate buyers and sellers.
For sellers, the low rates mean their property is affordable to a larger pool of buyers.
And for buyers, mortgage rates that are low is obviously great since it means a lower monthly payment.
TIP: These are the average mortgage rates and do not reflect what is realistic or possible for everyone. The 1st step all serious buyers take is sitting down with a lender and discussing their situation and budget. Also getting a Pre-Approval Letter is a very smart first step.
We did get some very distressing news this week that the home ownership rate has dropped to the lowest level since 1965.
How many of today’s home buyers were not even born in 1965?
How many of today’s home buyers realize how low mortgage rates are compared to the distant past?
We did hear from the FOMC this week and they did what everyone expected…
In other words, they left their benchmark rates unchanged.
Which means mortgage rates should stay low for the time being. However, we do not know what they may do in September.
For now mortgage rates are low but that does not help with the tight inventory or rising home prices.
My suggestion to all serious home buyers is to get the ball rolling.
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.