Update on the average mortgage rates reported by Freddie, the MBA and Bankrate for the week of August 28 2016…
Freddie Mac on Mortgage Rates:
Not really any changes according to Freddie Mac this week:
- 30-year fixed rate mortgages averaged 3.43%
- Last week, 30-year fixed rate mortgages also averaged 3.43%
- Last year at this time, 30-year fixed rate mortgages averaged 3.84%
- 15-year fixed rate mortgages this week averaged 2.74%
- Last week, 15-year fixed rate mortgages also averaged 2.74%
- Last year at this time, 15-year fixed rate mortgages averaged 3.06%
Check out the chart from Freddie Mac:
Sean Becketti, chief economist, Freddie Mac said:
Treasury yields were little changed from the prior week and the 30-year fixed-rate mortgage held steady at 3.43 percent this week. This marks the ninth consecutive week that mortgage rates have been below 3.5 percent. Markets are erring on the side of caution ahead of the second estimate for second-quarter GDP and Fed Chair Janet Yellen’s speech on Friday.
Becketti’s remarks are from before Yellen’s speech Friday where she said the case to raise rates has strengthened. How much and when is hard to say…
Bankrate on Mortgage Rates:
Bankrate did report some increases this week:
- The average 30 year fixed rate mortgages increased from 3.56% to 3.57%
- The average 30 year fixed rate jumbo mortgages decreased from 3.61% to 3.57%
- The average 15 year fixed rate mortgage increased from 2.84% to 2.87%
The MBA on Mortgage Rates:
The MBA reported that applications decreased and mortgage rates increased this week:
The average contract interest rate for 30 year fixed rate mortgages with conforming loan balances ($417,000 or less) was 3.67% for 80% loan-to-value ratio (LTV) loans. This is up from the 3.64% reported last week.
The average contract interest rate for 30 year fixed rate mortgages with jumbo loan balances (greater than $417,000) was 3.62% for 80% LTV loans. This is up from the 3.60% reported last week.
The average contract interest rate for 15 year fixed rate mortgages was 2.95% for 80% LTV loans. This is up from the 2.90% reported last week.
The Take Away:
Most of these rates are from before Yellen’s speech but there are many more factors that will affect mortgage rates. And while most of the mortgage rates I track DID increase, it is the tight inventory and increasing home prices that buyers must also battle.
In general, if buying a home makes sense for you, it may be time to get your butt in gear. The longer you wait, the more likely it is that home prices and mortgage rates will increase.
The tight inventory also means that serious home buyers need to be ready to act when or if they find a home that suits their tastes, criteria and budget.
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.