Let’s look at the average mortgage rates reported this week by the Mortgage Bankers Association and Freddie Mac…
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 3.88% from 3.8%, with points decreasing to 0.40 from 0.49 (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 $417,500) increased to 4.12% from 4.06%, with points decreasing to 0.35 from 0.38 (including the origination fee) for 80% LTV loans.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.71% from 3.72%, with points decreasing to 0.46 from 0.47 (including the origination fee) for 80% LTV loans.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.24% from 3.25%, with points decreasing to 0.44 from 0.45 (including the origination fee) for 80% LTV loans.
Freddie Mac Reported:
- 30 year fixed rate mortgages averaged 3.62% with an average 0.8 point
- This is down from last week when it averaged 3.66%
- Last year at this time, 30 year fixed rate mortgages averaged 4.60%
- 15 year fixed rate mortgages this week averaged 2.89% with an average 0.7 point
- This is down from last week when it averaged 2.94%
- A year ago at this time, 15 year fixed rate mortgages averaged 3.75%
The Take Away:
Freddie Mac said that the average 30 year fixed rate mortgage has matched or hit a new record low in 10 of the last 11 weeks. But the MBA reported both increasing and decreasing mortgage rates. However, the crappy unemployment report released this week may cause rates to decrease. Does this mean you should wait to buy?
Maybe or maybe not…
There is much more to getting the best deal on a mortgage besides just the rate. There are different fees, different down payment amounts and many other factors that your mortgage lender can discuss with you. Plus it is quite possible that someone else will NOT wait and they will buy that home you have had your eye on…
As always, these are the average mortgage rates. You might get a better rate or you might have to pay more. And you really need to discuss with your lender how much down payment and closing costs there are with each specific type of mortgage.
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.