Discussing the latest reports from Freddie and the MBA on mortgage rates…
From Freddie Mac:
- 30-year fixed-rate mortgages averaged 4.65% with an average 0.5 point
- This is up from last week when it averaged 4.60%
- Last year at this time, 30-year fixed-rate mortgages averaged 3.83%
- 15-year fixed-rate mortgages averaged 4.11% with an average 0.5 point
- This is up from last week when it averaged 4.06%
- Last year at this time, 15-year fixed-rate mortgages averaged 3.13%
Sam Khater, Freddie Mac’s chief economist, said:
Mortgage rates are drifting upward again and represent continued affordability challenges for prospective buyers – especially first-time buyers. Borrowing costs are moving right now for three main reasons: the very strong economy, higher U.S. government debt issuances and global trade tensions.
This is the 4th consecutive week that Freddie has reported an increase in mortgage rates…
From the Mortgage Bankers Association:
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased to its highest level since April 2011, 4.88%, from 4.84%, with points decreasing to 0.44 from 0.46 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) increased to 4.77% from 4.72%, with points decreasing to 0.28 from 0.47 (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 4.30% from 4.28%, with points increasing to 0.49 from 0.47 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
Ouch! We are seeing mortgage rates increasing steadily and it appears that they will continue to increase…
As I say each and every week, these are the average rates and may not reflect what is possible for every home buyer. One of the most important first steps in the home buying process is figuring out your financing.
In case you missed my post last week, 73.5% of home buyers are figuring out their mortgage BEFORE they start looking at homes. This is great news since it is the logical and best way to ensure your home buying success!
Short post today but as always, if you have any questions about real estate in the Anderson SC area, Contact Me!