Update on the average mortgage rates reported by Freddie, the MBA and Bankrate for the week of September 25 2016…
It has been way too long since I wrote a post about mortgage rates. I actually took a few days off to go to a wedding. It had been literally years since I took some time off. So it was nice but I was so behind when I returned home.
Not that many home buyers that are wondering about the latest mortgage rates care about me or my personal life. So let’s dive right in!
Freddie Mac on Mortgage Rates:
Freddie Mac reported that mortgage rates decreased this week:
- 30-year fixed rate mortgages averaged 3.48%
- Last week, 30-year fixed rate mortgages also averaged 3.50%
- Last year at this time, 30-year fixed rate mortgages averaged 3.86%
- 15-year fixed rate mortgages this week averaged 2.76%
- Last week, 15-year fixed rate mortgages also averaged 2.77%
- Last year at this time, 15-year fixed rate mortgages averaged 3.08%
Check out the chart from Freddie Mac:
Sean Becketti, chief economist at Freddie Mac said:
The 10-year Treasury yield declined after last week’s post-Brexit high in anticipation of the Fed’s September policy meeting. The 30-year fixed-rate mortgage followed Treasury yields, falling 2 basis points and settling at 3.48 percent.
Bankrate on Mortgage Rates:
Bankrate did report some decreases this week:
- The average 30 year fixed rate mortgages decreased from 3.64% to 3.62%
- The average 30 year fixed rate jumbo mortgages decreased from 3.64% to 3.63%
- The average 15 year fixed rate mortgage was unchanged at 2.91%
The MBA on Mortgage Rates:
The MBA reported that 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 3.70% for 80% loan-to-value ratio (LTV) loans. This is up from the 3.67% reported last week.
The average contract interest rate for 30 year fixed rate mortgages with jumbo loan balances (greater than $417,000) was 3.69% for 80% LTV loans. This is up from the 3.64% reported last week.
The average contract interest rate for 15 year fixed rate mortgages was 2.99% for 80% LTV loans. This is up from the 2.97% reported last week.
The Take Away:
As always, these are the average mortgage rates and do not tell you what is realistic or possible for you.
We did hear from the FOMC this week and they did not raise their benchmark rate. Remember that mortgage rates are not directly set by the Fed or their benchmark rate. It can however affect mortgage rates and will affect the economy in general.
The economy and the housing market do tend to move in the same direction. We did get positive news about jobless claims decreasing and single family home permits increasing.
The bad news this week was that US existing home sales fell. This is talking about the entire US and not about what is happening in the Anderson SC real estate market.
My suggestion is that IF you are serious about buying a home that you go ahead and get the ball rolling now. The upcoming election could have a major impact on the economy, housing market and mortgage rates.
No matter who wins, it is a very strong possibility that buying now will be better than after the election. Monday’s debate should be interesting but remember it isn’t what people say, it is what they do that matters.
Sadly, we won’t know what either candidate will actually do until after they are in office.
Some other things to watch this coming week will be new home sales and the latest Case-Shiller home price index. And of course, I will be posting the latest weekly market reports for our area tomorrow night.
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.