Update on the average mortgage rates reported by the Mortgage Bankers Association and Freddie Mac for the week ending 9-13-2013…
Lucky Friday the 13th!
So is it a lucky day for people watching mortgage rates? Well let’s check in on the average mortgage rates reported this week by Freddie Mac and the Mortgage Bankers Association:
Freddie Mac Reported:
- 30-year fixed-rate mortgages averaged 4.57%
- This is the same as last week
- Last year at this time, 30-year fixed-rate mortgages averaged 3.55%
- 15-year fixed-rate mortgages this week averaged 3.59%
- This is also the same as last week
- Last year at this time, 15-year fixed rate mortgages averaged 2.85%
Check out the chart from Freddie Mac showing mortgage rates:
The Mortgage Bankers Association Reported:
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.80% from 4.73%, with points increasing to 0.46 from 0.33 (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 $417,000) increased to 4.84% from 4.71%, with points increasing to 0.41 from 0.25 (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 4.56% from 4.48%, with points increasing to 0.28 from 0.03 (including the origination fee) for 80% loan-to-value ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.83% from 3.75%, with points increasing to 0.42 from 0.30 (including the origination fee) for 80% loan-to-value ratio loans.
The Take Away:
Sadly, it appears we were not lucky enough this week to see mortgage rates drop. Which really isn’t a surprise because of all the problems we are facing that mean that mortgage rates either held steady or increased.
But the truth is, we are still lucky to enjoy mortgage rates that are historically low. While that chart above does not go that far back, check out this chart showing exactly how low rates are now compared to the past:
So if buyers are hesitating because they think rates are too high, the truth is they suffer from not realizing just how good rates are NOW compared to the not too distant past. That chart is showing average 30 year mortgage rates. Should you look at the past 30 years?
I would say yes. People focus too much on the right now or the very recent past. If someone complains about higher rates, ask them if they know how high rates were back in the 80’s.
I am sure some will reply they were not even born in the 80s. But that does not change history. And historically, mortgage rates are great!
Something to think about this weekend.
Remember, these are just the average rates and finding out exactly what is possible for you means talking to a lender. 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.