Update on the average mortgage rates reported by the Mortgage Bankers Association and Freddie Mac for the week ending 8-16-2013…
Dang where did the week go? It sure did fly by and now it is time to check in on the average mortgage rates reported by Freddie Mac and the Mortgage Bankers Association. 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.
Freddie Mac Reported:
- 30-year fixed-rate mortgages averaged 4.40%
- This is unchanged from last week
- Last year at this time, 30-year fixed-rate mortgages averaged 3.62%
- 15-year fixed-rate mortgages averaged 3.44%
- This is up from last week when it averaged 3.43%
- A year ago at this time, 15-year fixed-rate mortgages averaged 2.88%
Frank Nothaft, vice president and chief economist, Freddie Mac said:
Fixed mortgage rates have been bouncing around over the past few weeks on market speculation that the Fed will taper some of its monetary stimulus. In fact, 65% of economists surveyed by Bloomberg expect the Fed to reduce the amount of bond purchases at its September 17th and 18th monetary policy committee meetings. Currently, mortgage rates on 30-year fixed mortgages are 1.1 percentage points above their all-time low set on November 21, 2012, which translates into $125 more per month in mortgage payments on a $200,000 loan.
Check out the chart from Freddie showing the recent history of mortgage rates:
The Mortgage Bankers Association Reported:
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 4.56% from 4.61%, with points decreasing to 0.39 from 0.42 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 4.57% from 4.64%, with points decreasing to 0.25 from 0.34 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.25% from 4.33%, with points increasing to 0.30 from 0.26 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.60% from 3.66%, with points decreasing to 0.35 from 0.43 (including the origination fee) for 80% loan-to-value ratio loans.
The Take Away:
Looks like we can enjoy some temporary relief from rising mortgage rates. But how long will rates stay this low? If the Fed does start to taper QE in September, then we can expect mortgage rates to start climbing.
And it isn’t just the economists that Bloomberg surveyed that think rates may increase soon. According to Fannie Mae’s latest report on housing, 62% think mortgage rates will rise in the next year. Interesting that this same report shows that 74% think it is a good time to buy a home.
- Do you think mortgage rates are going to increase soon?
- Do you think it is a good time to buy a home?
- Is it a good time for YOU to buy a home?