Update on the average mortgage rates reported by Freddie, the MBA and Bankrate for the week of 8-21-2016…
Freddie Mac on Mortgage Rates:
This week, Freddie Mac reported mortgage rates decreased:
- 30-year fixed rate mortgages averaged 3.43%
- Last week, 30-year fixed rate mortgages averaged 3.45%
- Last year at this time, 30-year fixed rate mortgages averaged 3.93%
- 15-year fixed rate mortgages this week averaged 2.74%
- Last week, 15-year fixed rate mortgages averaged 2.76%
- Last year at this time, 15-year fixed rate mortgages averaged 3.15%
Check out the chart from Freddie Mac:
While the decreases are not dramatic, you can see the downward trend in the chart.
Of course, this chart does not show the upward trend in home prices…
Bankrate on Mortgage Rates:
Bankrate did not report any real or scary changes this week:
- The average 30 year fixed rate mortgages was unchanged at 3.56%
- The average 30 year fixed rate jumbo mortgages increased to 3.61%
- The average 15 year fixed rate mortgage was unchanged at 2.84%
The MBA on Mortgage Rates:
The MBA reported that applications and mortgage rates decreased this week:
The average contract interest rate for 30 year fixed rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.64% for 80% loan-to-value ratio (LTV) loans. This is down from the 3.65% reported last week.
The average contract interest rate for 30 year fixed rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.60% for 80% LTV loans. This is down from the 3.64% reported last week.
The average contract interest rate for 15 year fixed rate mortgages was 2.90% for 80% LTV loans. This is down from the 2.93% reported last week.
The Take Away:
No huge changes this week but as I say almost every week, these are the average mortgage rates and do not reflect what is realistic or possible for you.
One of the first steps of home buying is talking to a lender.
No reason to put the horse ahead of the cart…
The smart thing to do is to start the journey towards buying a home by heading in the right direction.
Investigate your mortgage options, the down payments and closing costs .
Think about your budget and set your maximum home price by the corresponding monthly payment.
Remember to include all the costs such as insurance, taxes, maintenance etc in your budget.
Failing to plan is planning to fail after all!
The Fine Print: As always, I am providing this to you for informational purposes only! I am a blogger and REALTOR in Anderson SC and not a mortgage lender. You should contact the lender of your choice directly to learn more about its mortgage products and your eligibility for such products. My suggestion is that ALL serious legitimate buyers take the first step and talk with a mortgage professional.