Looking at the average rates reported by Freddie Mac, the MBA and Bankrate for the week of 7-5-2014 and what we can expect rates to do in the coming weeks…
Hope you are enjoying your 4th of July weekend! We are so blessed to live in America. I really hope you and your loved ones have a happy and safe 4th of July holiday!
Even though it is a holiday weekend, that does not change that it is time to once again look at this week’s mortgage rates. Plus I will discuss some of the latest news and what it is going to mean for mortgage rates in the coming weeks.
Freddie Mac Reported:
- 30-year fixed-rate mortgages averaged 4.12% with an average 0.5 point
- This is down from last week when it averaged 4.14%
- Last year at this time, 30-year fixed rate mortgages averaged 4.29%
- 15-year fixed rate mortgages averaged 3.22% with an average 0.5 point
- This is the same as last week
- Last year at this time, 15-year fixed rate mortgages averaged 3.39%
Check out the mortgage rate chart from Freddie Mac:
The 30-year fixed rate mortgage was 4.28% which is the same as last week
The 15-year fixed rate mortgage rose 1 basis point to 3.4%
The average rate for a 30-year jumbo mortgage fell 2 basis points to 4.29%
The Mortgage Bankers Association Reported:
The average contract interest rate for 30-year fixed rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.28% from 4.33%, with points decreasing to 0.14 from 0.18 (including the origination fee) 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) decreased to 4.26% from 4.28%, with points decreasing to 0.06 from 0.12 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
The average contract interest rate for 15-year fixed rate mortgages decreased to 3.42% from 3.47%, with points decreasing to 0.16 from 0.19 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
The Take Away:
First let me mention:
- Mortgage rates are still super low
- Mortgage rates are lower than what they were at this time last year
With that said, the rain on every one’s 4th of July celebrations could be this week’s positive news on unemployment. As I said last week that as the economy improves, we should expect to see mortgage rates rise. Not saying you should panic yet…
Still the fact that unemployment is near a 6 year low does show us that the economy is improving. I did read several reports that mortgage rates had already started increasing after the positive news regarding jobs.
For now, just be aware that it is possible that rates may be increasing in the coming weeks.
As I said before, if the economy improves, it is a very strong possibility that mortgage rates will increase. We cannot say this with 100% certainty because of the unknowns regarding what will happen when the Fed stop QE, the stuff happening in the Middle East and Ukraine, etc etc.
Just keep your ears open and touch base with your mortgage lender next week to see what is your best course of action.
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.