Mortgage Rates Inch Up Slightly This Week

Mortgage rates across the board ticked up this week, but still hover near historical lows.

“Post-Brexit volatility tapered off over the last two weeks, allowing interest rates to bounce back a bit from their record (10-year Treasury yield) and near-record (30-year mortgage rate) lows,” says Sean Becketti, Freddie Mac’s chief economist. “This week, the 30-year fixed mortgage rate increased 3 basis points to a still-quite-low 3.45 percent. With the Federal Reserve on hold and the UK monetary authority taking at least a one-month breather, we don’t expect any significant movement in mortgage rates in the near-term. This summer remains an auspicious time to buy a home.”

Freddie Mac reports the following national averages for the week ending July 21:

  • 30-year fixed-rate mortgages: averaged 3.45 percent, with an average 0.5 point, rising from last week’s 3.42 percent average. Last year a this time, 30-year rates averaged 4.04 percent.
  • 15-year fixed-rate mortgages: averaged 2.75 percent, with an average 0.5 point, rising from last week’s 2.72 percent average. A year ago, 15-year rates averaged 3.21 percent.

Source: Freddie Mac

Home Loan Rates Stay Near Record Low

“We describe the last few weeks as A Tale of Two Rates,” says Sean Becketti, Freddie Mac’s chief economist. “Immediately following the Brexit vote, U.S. Treasury yields plummeted to all-time lows. This week, markets stabilized and the 10-year Treasury yield rebounded sharply. In contrast, the 30-year mortgage rate declined after the Brexit vote, but only by half as much as the 10-year Treasury yield. This pattern suggests that mortgage rates are likely to remain low throughout the summer.”

Freddie Mac reports the following national averages for the week ending July 14:

  • 30-year fixed-rate mortgages: averaged 3.42 percent, with an average 0.5 point, rising slightly from last week’s 3.41 percent. A year ago, 30-year rates averaged 4.09 percent.
  • 15-year fixed-rate mortgages: averaged 2.72 percent, with an average 0.5 point, dropping from last week’s 2.74 percent. A year ago, 15-year rates averaged 3.25 percent.

Source: Freddie Mac

School Location Still Key for Home Buyers

You may want to share more information with your clients about the school options near your listings. Buyers say it’s critical to their decision-making.

More than 75 percent of parents say their child’s education is an important factor in their search for home, according to a new survey conducted by Bank of America of 1,000 home buyers. 53 percent say they would buy a new home in a specific neighborhood to get their child into a better school.

Sixty-four percent of parents say that knowing the quality or ranking of nearby schools is extremely important to them before purchasing a new home. Also, 37 percent of parents say the school’s extracurricular reputation is also important in their decision.

View more data at Source: Bank of America

Mortgage Rates Continue Near All-Time Lows

Mortgage rates hit a new 2016 low this week, nearing the lowest averages ever recorded. Freddie Mac reports the 30-year mortgage rate is close to the November 2012 record low of 3.31 percent.

“Continuing fallout from the Brexit vote drove Treasury yields lower again this week,” says Sean Becketti, Freddie Mac’s chief economist. “The 30-year fixed-rate mortgage followed Treasury yields, falling 7 basis points to 3.41 percent in this week’s survey. Mortgage rates have dropped 15 basis points over the past two weeks.”

Freddie Mac reports the following national averages for the week ending July 7:

  • 30-year fixed-rate mortgage: averaged 3.41 percent, with an average 0.5 point, dropping from last week’s 3.48 percent average. Last year at this time, 30-year rates averaged 4.04 percent.
  • 15-year fixed-rate mortgages: averaged 2.74 percent, with an average 0.4 point, falling from last week’s 2.78 percent average. A year ago, 15-year rates averaged 3.20 percent.

Source: Freddie Mac

Home Loan Interest Rates Near All-Time Low

Fixed-rate mortgages this week dropped to their lowest averages of the year, which analysts attribute to the fallout from last week’s “Brexit” vote. The 30-year fixed-rate mortgage averaged 3.48 percent this week, near its all-time record low of 3.31 percent in November 2012, Freddie Mac reports.

Freddie Mac reports the following national averages for the week ending June 30:

  • 30-year fixed-rate mortgages: averaged 3.48 percent, with an average 0.5 point, falling from last week’s 3.56 percent average. Last year at this time, 30-year rates averaged 4.08 percent.
  • 15-year fixed-rate mortgages: averaged 2.78 percent, with an average 0.4 point, dropping from last week’s 2.83 percent average. Last year at this time, 15-year rates averaged 3.24 percent.

Source: Freddie Mac

It’s a Good Time to Lock in Mortgage Rates

“This week’s survey shows the 30-year fixed rate inching up to 3.56 percent, only 2 basis points above last week’s average. The low rates continue to be good news for the housing market, as existing home sales rose 1.8 percent to a 5.53 million seasonally adjusted annual rate in the month of May — the highest level since February 2007.”

Freddie Mac reports the following national averages for the week ending June 23:

  • 30-year fixed-rate mortgages: averaged 3.56 percent, with an average 0.6 point, rising from last week’s 3.54 percent average. A year ago, 30-year rates averaged 4.02 percent.
  • 15-year fixed-rate mortgages: averaged 2.83 percent, with an average 0.5 point, increasing from last week’s 2.81 percent average. A year ago, 15-year rates averaged 3.21 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.74 percent, with an average 0.5 point, holding the same average from a week ago. Last year at this time, 5-year ARMs averaged 2.98 percent.

Source: Freddie Mac

Home Loan Rates Plunge to 3-Year Lows

“The 30-year mortgage rate responded by falling 6 basis points for the second straight week to 3.54 percent — yet another low for 2016. Wednesday’s Fed decision to once again stand pat on rates, as well as growing anticipation of the U.K.’s upcoming European Union referendum will make it difficult for Treasury yields and — more importantly — mortgage rates to substantially rise in the upcoming weeks,” says Sean Becketti, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages for the week ending June 16:

  • 30-year fixed-rate mortgages: averaged 3.54 percent, with an average 0.5 point, falling from last week’s 3.60 percent average. Last year at this time, 30-year rates averaged 4 percent.
  • 15-year fixed-rate mortgages: averaged 2.81 percent, with an average 0.5 point, dropping from last week’s 2.87 percent average. A year ago, 15-year rates averaged 3.23 percent.

Source: Freddie Mac

How Much Will Buyers Pay for Walkable Space?

Urban development that boasts high density and walkability is in demand over life in the suburbs, according to a report by the Center for Real Estate and Urban Analysis at George Washington University School of Business and LOCUS: Responsible Real Estate Developers and Investors. In fact, such places are gaining market share against suburban areas for the first time in decades.

The report defines walkable urban areas as those with high density, more mixed-use real estate, and multiple transportation options. These areas command larger rent premiums over suburban spaces, with the ability to charge 90 percent more for office space, 71 percent for retail, and 66 percent for multifamily rentals.

But just because a place might lack a history of density and walkability doesn’t mean it’s stuck with lower rents. The study found that new development can help, with areas known for sprawl taking notice of the trend and making strides in adding more density and walkability.

Source: “Walkable Cities Gaining Ground Against Suburbs, Says Report,” Curbed.com (June 14, 2016)

Why a Weaker Economy Shouldn’t Scare You

A disappointing jobs report last week revealed that new jobs hit a five-year low in May. While that’s no reason for celebration, there is a silver-lining for the housing market.

It’s likely that the Federal Reserve will not raise interest rates later this month. In fact, the Fed may not raise rates for a while now, which could be a boon for home shoppers looking to lock in historically low mortgage rates.

“The real beneficiaries are people who are in the process of buying a home this spring or summer,” says Jonathan Smoke, realtor.com®’s chief economist. “They can buy more of a home with the same amount of payment, or they have an easier time qualifying” for a loan.

Source: “Why a Weaker Economy Could Be Good for Home Buyers and Owners,” realtor.com® (June 3, 2016)

Home Loan Interest Rates Push Upward

Averages on fixed-rate mortgages rose this week, but remain near three-year lows, Freddie Mac reports in its weekly mortgage market survey.

“Mortgage rates continue to adjust to this new level with the 30-year fixed rate inching up another 2 basis points this week to 3.66 percent. Recent statements by the Fed appear to have persuaded the market that a rate hike may come sooner than later,” says Sean Becketti, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages for the week ending June 2:

  • 30-year fixed-rate mortgages: averaged 3.66 percent, with an average 0.5 point, rising from last week’s 3.64 percent average. A year ago, 30-year rates averaged 3.87 percent.
  • 15-year fixed-rate mortgages: averaged 2.92 percent, with an average 0.5 point, increasing from last week’s 2.89 percent average. A year ago, 15-year rates averaged 3.08 percent.

Source: Freddie Mac