Checking the average mortgage rates reported by Freddie Mac, the MBA and Bankrate for the week of 9-6-2014…
Ahhh Saturday! Which for many people means enjoying the weekend. Or doing some work around the home. But around here, it means it is time to check in on the average mortgage rates reported by Freddie Mac, the MBA and Bankrate. Plus I will wrap up with a look at the bigger picture and what we may see in the coming weeks and months.
So let’s dive in!
Freddie Mac Reported:
30 year fixed rate mortgages averaged 4.10% with an average 0.5 point
This is the same as last week.
Last year at this time, 30 year fixed rate mortgages averaged 4.57%
15 year fixed rate mortgages this week averaged 3.24% with an average 0.5 point
This is down from last week when it averaged 3.25%
Last year at this time, 15 year fixed rate mortgages averaged 3.59%
Check out the mortgage rate chart from Freddie Mac:
30 year fixed rate mortgages rose 1 basis point to 4.24%
15 year fixed rate mortgages fell 1 basis point to 3.37%
The average rate for a 30 year jumbo mortgage was unchanged from last week at 4.29%
The Mortgage Bankers Association Reported:
The average contract interest rate for 30 year fixed rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.25% from 4.28%, with points decreasing to 0.24 from 0.25 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. This is the lowest level since June 2013!
The average contract interest rate for 30 year fixed rate mortgages with jumbo loan balances (greater than $417,000) remained unchanged at 4.22%, with points decreasing to 0.19 from 0.28 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
The average contract interest rate for 15 year fixed rate mortgages increased to 3.48% from 3.47%, with points decreasing to 0.30 from 0.34 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
MBA’s Market Composite Index, a measure of mortgage loan application volume, increased 0.2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1% compared with the previous week. MBA’s unadjusted Purchase Index decreased 4% compared with the previous week and was 12% lower than the same week one year ago.
The Take Away:
Not a lot of changes and I must point out these rates are all from BEFORE the release of the August jobs report from the Bureau of Labor Statistics. Friday’s job report was weaker than expected and this may help to keep interest rates from rising in the near future.
Weaker than expected economic data such as the jobs report usually means bond prices increase. When that happens, it helps to keep interest rates down. But we know that it is only a matter of time before the Federal Reserve stops keeping rates low.
Consider this snippet from a recent Reuters story:
A majority of Wall Street’s top bond firms see the Federal Reserve starting to raise interest rates by the second quarter of next year
This means that for now we can enjoy low mortgage rates BUT we can expect higher mortgage rates in the first half of 2015.
I would remind everyone that mortgage rates are still at historically low levels TODAY.
There’s no way to predict what mortgage rates will do in the coming months. The economy, the end of quantitative easing, unrest in the Middle East and the situation in the Ukraine will all impact the economy, housing and mortgage rates.
Focus on the present and what you know:
- You know that as of today, mortgage rates are still LOW
- You know that home prices are still INCREASING
The longer that buyers wait, the more likely it is they will pay more because of increasing home prices.
Even if rates stay the same or decrease slightly.
If it makes sense for someone to buy a home, both from a financial and personal standpoint, then it looks like sooner rather than later is their best bet.
Strangely, I did read that mortgage rates did seem to increase after the release of the Jobs Report. Which contradicts what should have happened…
Remember that rates change daily and sometimes several times a day. It is best for buyers to stay in touch with their mortgage professional to see what their best course of action is!
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.