Home Loan Interest Rates Recede to Near-Record Lows

Great news! “Mortgage rates continue to be relatively stable and at near record lows,” says Sean Becketti, Freddie Mac’s chief economist. “The 30-year fixed-rate mortgage fell 5 basis points week-over-week to 3.47 percent, erasing last week’s increase. At the same time, the 10-year Treasury yield ended the week relatively flat — up about 2 basis points.”

Freddie Mac reports the following national averages for the week ending Oct. 27:

  • 30-year fixed-rate mortgages: averaged 3.47 percent, with an average 0.6 point, dropping 5 basis points from 3.52 percent last week. Last year at this time, 30-year rates averaged 3.76 percent.
  • 15-year fixed-rate mortgages: averaged 2.78 percent, with an average 0.5 point, dropping slightly from last week’s 2.79 percent average. A year ago, 15-year rates averaged 2.98 percent.

Source: Freddie Mac

 

‘Home Interest Rates Fall’, Loan Demand Soars 9%

Mortgage rates posted a sharp drop last week, which sparked a refinancing rush among home owners, the Mortgage Bankers Association reported Wednesday.

Mortgage application volume, including applications for refinancings and home purchases, surged 9.3 percent week over week on a seasonally adjusted basis.

The gains were almost all attributed to refinancing applications, which posted a 16 percent week-to-week increase. Applications for home purchases rised just 0.2 percent. Still, purchase applications are 25 percent higher than a year ago, the MBA reports.

Source: “Wealthy Borrowers Behind 9.3% Jump in New Mortgages,” CNBC (2/10/16)

Mortgage Rates in Free Fall, After Fed’s Vote

The 30-year fixed-rate mortgage averaged 3.86 percent this week, dropping lower after the Federal Reserve’s decision last week to hold off on raising the Federal funds rate.

“Global growth concerns and lackluster inflation convinced the Fed to defer a hike in the Federal funds rate,” says Sean Becketti, Freddie Mac’s chief economist. “In response, Treasury yields fell about nine basis points over the week, with some larger day-to-day swings along the way.”

However, on Thursday, Federal Reserve Chair Janet Yellen said the U.S. central bank was on track to raise interest rates this year for the first time in nearly a decade. The Fed’s benchmark short-term rate has stayed near zero since December 2008, which has also helped to keep mortgage rates low ever since.

Freddie Mac reports the following national averages for the week ending Sept. 24:

  • 30-year fixed-rate mortgages: averaged 3.86 percent, with an average 0.7 point, dropping from last week’s 3.91 percent average. Last year at this time, 30-year rates averaged 4.20 percent.
  • 15-year fixed-rate mortgages: averaged 3.08 percent, with an average 0.6 point, dropping from last week’s 3.11 percent average. A year ago, 15-year rates averaged 3.36 percent.

Source: Freddie Mac and “Fed’s Yellen Gets Medical Attention After Struggling With Speech,” Reuters (Sept. 24, 2015)

Mortgage Rates Fall, But Rises Likely Next Week

Freddie Mac says that the drop in mortgage rates this week may be temporary, due to the Fed’s recent announcement that it would begin winding down its bond-purchasing stimulus program sooner than originally thought.

The Federal Reserve hinted Wednesday that interest rates could start to rise in early 2015, and that it is continuing to taper its economic stimulus programs, including its bond-purchase program that had been aimed at holding down long-term interest rates and increasing job growth. The Fed said that rates could remain low for “a considerable time” after its bond purchase program ends, but new Fed Reserve Chair Janet Yellen then later clarified that would be about six months time frame.

“The rate on the 10-year treasury note rose following the Fed’s announcement Wednesday afternoon and, if this holds, interest rates may begin to trend higher going into next week,” says Frank Nothaft, Freddie Mac’s chief economist.

Freddie Mac reported the following national averages for the week ending March 20:

  • 30-year fixed-rate mortgages: averaged 4.32 percent, with an average 0.6 point, dropping from last week’s 4.37 percent average. Last year at this time, 30-year rates averaged 3.54 percent.
  • 15-year fixed-rate mortgages: averaged 3.32 percent, with an average 0.6 point, falling from last week’s 3.38 percent average. A year ago, 15-year rates averaged 2.72 percent at this time.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.02 percent, with an average 0.4 point, falling from last week’s 3.09 percent average. A year ago, 5-year ARMs averaged 2.61 percent.

Source: Freddie Mac and “Fed Changes Guidance on Raising Rates,” USA Today (3/19/14)

Lower Rates Trigger Jump in Mortgage Applications

Mortgage applications surged 12 percent last week on lower interest rates, the Mortgage Bankers Association reports.

The refinance index grew 11 percent last week, according to the MBA’s seasonally adjusted index.

Applications for home purchases — viewed as a leading gauge of future home buying — edged up 12 percent for the week.

Meanwhile, mortgage rates fell last week, with the 30-year fixed-rate mortgage dropping from 4.72 percent to 4.66 percent last week.

Source: “Mortgage Applications Surge on Lower Rates,” CNBC (Jan. 15, 2014) and “U.S. Mortgage Applications Volume Jumped Last Week,” The Wall Street Journal (Jan. 15, 2014)

‘Mortgage Rates Fall’ to Four-Month Lows!

Fixed mortgage rates dropped to their lowest levels since this summer, giving a lift this week to the housing recovery.

“Mortgage rates slid this week as the partial government shutdown led to market speculation that the Federal Reserve will not alter its bond purchases this year,” says Frank Nothaft, Freddie Mac’s chief economist.

Mortgage rates have been dropping since September when the Federal Reserve decided to delay tapering its $85-billion per month bond purchasing program, which has been keeping rates low.

Freddie Mac reports the following national averages for the week ending Oct. 24:

  • 30-year fixed-rate mortgages: averaged 4.13 percent, with an average 0.8 point, dropping from last week’s 4.28 percent average. That’s the lowest average for the 30-year fixed-rate mortgage since June 20. Last year at this time, 30-year rates averaged 3.41 percent.
  • 15-year fixed-rate mortgages: averaged 3.24 percent, with an average 0.6 point, falling from last week’s 3.33 percent average. Last year at this time, 15-year rates averaged 2.72 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3 percent, with an average 0.4 point, falling from last week’s 3.07 percent average. A year ago, 5-year ARMs averaged 2.75 percent.
Source: REALTOR(R) Magazine Daily News

Mortgage Rates ‘Roll Back’ to July Levels

Mortgage rates continue to fall, following the Federal Reserve’s decision to delay tapering its bond purchase program. The Federal Reserve announced last week that it would delay winding down its $85 billion per month bond purchasing program, which has helped to keep mortgage rates near record lows in recent years.

“These low rates should somewhat offset the house price gains seen the last number of months and keep housing affordability elevated,” says Frank Nothaft, Freddie Mac’s chief economist.

The average rate on the 30-year fixed-rate mortgage, the most popular option among home buyers, fell to its lowest level this week since the week ending July 25, Freddie Mac reports in its weekly mortgage market survey.

Freddie Mac reports the following national averages for the week ending Sept. 26:

  • 30-year fixed-rate mortgages: averaged 4.32 percent, with an average 0.7 point, dropping from last week’s 4.50 percent average. Last year at this time, 30-year rates averaged 3.40 percent.
  • 15-year fixed-rate mortgages: averaged 3.37 percent, with an average 0.7 point, dropping from last week’s 3.54 percent average. Last year at this time, 15-year rates averaged 2.73 percent.
  • 5-year hybrid adjustable-rate mortgage: averaged 3.07 percent, with an average 0.5 point, dropping from last week’s 3.11 percent average. Last year at this time, 5-year ARMs averaged 2.71 percent.
Source: Freddie Mac

Mortgage Rates Continue to Fall

Fixed-rate mortgages sank down near their record lows last week , according to Freddie Mac’s weekly mortgage market survey. The low mortgage rates are helping to keep homebuyer affordability high and unlock savings for home owners.

Freddie Mac reported the following national averages with mortgage rates for the week ending Dec. 13:

30-year fixed-rate mortgages: averaged 3.32 %, with an average 0.7 point, dropping from last week’s 3.34 % average. The record low for the 30-year fixed-rate mortgage was set last month, averaging 3.31 %. A year ago, 30-year rates averaged 3.94 %.

15-year fixed-rate mortgages: averaged 2.66 %, with an average 0.6 point, dropping from last week’s 2.67 % average. The all-time low for 15-year rates was also set last month, averaging 2.63 %. Last year at this time, 15-year rates averaged 3.21 %.

5-year adjustable-rate mortgages: averaged 2.70%, with an average 0.6 point, rising from last week’s 2.69 % average. Last year at this time, 5-year ARMs averaged 2.86 %.

Source: Freddie Mac

Mortgage Rates Fall into Record-Breaking Territory

Fixed-rate mortgages dropped to new all-time lows this week, pushing homebuyer affordability even higher for those who can qualify.

“Fixed mortgage rates eased this week to record lows on indicators of higher consumer confidence and wholesale prices,” Frank Nothaft, Freddie Mac’s chief economist says.

The following are the national averages with mortgage rates reported by Freddie Mac for the week ending Nov. 15:

•30-year fixed-rate mortgages: averaged a new low of 3.34 percent, with an average 0.7 point. The previous record low was 3.36 percent, set the week of Oct. 4. A year ago, 30-year rates averaged 4 percent.

•15-year fixed-rate mortgages: averaged a new low of 2.65 percent, with an average 0.7 point. Its previous record low was 2.66 percent, set during the week ending Oct. 18. A year ago, 15-year rates averaged 3.31 percent.

•5-year adjustable-rate mortgages: averaged 2.74 percent, with an average 0.6 point, rising slightly from last week’s 2.73 percent average. Last year at this time, 5-year ARMs averaged 2.97 percent.

Source: Freddie Mac