Update on the average mortgage rates reported by the Mortgage Bankers Association, Freddie Mac and the FHFA for the week ending 8-2-2013…
Time to check in on the average mortgage rates reported by Freddie Mac and the Mortgage Bankers Association. Plus I have highlights from the latest mortgage rate report from FHFA. Let’s dive in:
Freddie Mac Reported:
- 30-year fixed-rate mortgages averaged 4.39%
- This is up from last week when it averaged 4.31%
- Last year at this time, 30-year fixed-rate mortgages averaged 3.55%
- 15-year fixed-rate mortgages this week averaged 3.43%
- This is up from last week when it averaged 3.39%
- Last year at this time, 15-year fixed-rate mortgages averaged 2.83%
Check out the chart from Freddie Mac:
According to the FHFA, the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders index was 3.55% for loans closed in late June. The index is calculated using FHFA’s Monthly Interest Rate Survey. The contract rate on the composite of all mortgage loans was 3.55%, up 15 basis points from 3.40 in May.
Check out the chart from the FHFA:
The Mortgage Bankers Association Reported:
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) was unchanged at 4.58%, with points decreasing to 0.38 from 0.40 (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 4.64% from 4.66%, with points decreasing to 0.39 from 0.41 (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 increased to 4.30% from 4.28%, with points decreasing to 0.31 from 0.33 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.67% from 3.63%, with points increasing to 0.40 from 0.35 (including the origination fee) for 80% loan-to-value ratio loans.
The Take Away:
Well it looks like mortgage rates are bouncing all over the place. Despite the Fed attempting to reassure everyone this week regarding Quantitative Easing, it was the news today about unemployment that may have a larger effect on the real estate market and mortgage rates.
Doesn’t take a rocket surgeon to understand that more unemployed people means fewer people buying homes. The banks reacted to the unemployment news quickly as we saw rates drop slightly today. Which of course isn’t reflected in the rates above.
This does not change the fact that when the Federal Reserve does stop QE it will probably lead to much higher mortgage rates. We may be several months away from the end of QE but that doesn’t mean you should be dragging your feet. Still not time to panic but it is something buyers need to consider.
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.