Update on the latest average mortgage rates from Freddie Mac and the Mortgage Bankers Association for 8-11-2012…
Good afternoon! Worked a little more behind the scenes on trying to reduce some of the errors Google is giving when the search engine spiders visit this website. They seem to freak out that some pages no longer exist or have slightly different urls (the exact address you would type into your browser to go to a specific page). Pretty boring but has to be done.
Well since it is Saturday that means it is time to look at the average rates reported by Freddie Mac and the Mortgage Bankers Association.
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 3.76% from 3.75%, with points decreasing to 0.46 from 0.51 (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 4.04% from 4.01%, with points increasing to 0.35 from 0.32 (including the origination fee) for 80% loan-to-value loans.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.54% from 3.52%, with points decreasing to 0.49 from 0.55 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.08% from 3.09%, with points decreasing to 0.41 from 0.49 (including the origination fee) for 80 percent LTV loans.
Freddie Mac Reported:
- 30-year fixed-rate mortgages averaged 3.59% with an average 0.6 point
- This is up from last week when it averaged 3.55%
- Last year at this time, the 30-year fixed-rate mortgage averaged 4.32%
- 15-year fixed-rate mortgages this week averaged 2.84% with an average 0.6 point
- This is up from last week when it averaged 2.83%
- A year ago at this time, the 15-year fixed rate mortgage averaged 3.50%
The Take Away:
Only the 15 year rate reported by the MBA did not increase. This is the second week that rates have drifted higher. Not much higher but it makes me wonder if we are going to see the end of super low rates? Combining the rising mortgages rates with the reports of increasing home prices that I wrote about yesterday might be the motivation that some people need to buy a home.
So in some ways, this slight increase in rates combined with reports of increasing home prices might help sellers. But if rates rise too much it will hurt sellers. Higher rates mean buyers cannot afford as much home. So sellers may have to lower their asking price to attract more buyers.
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.