Relief in Mortgage Interest Rates Likely to Stick Around

Average fixed-rate mortgages moved lower this week, helping to keep buyer activity strong toward the close of the spring homebuying season, Freddie Mac reports in its weekly mortgage market survey.

“Yields on Treasury securities declined this week in response to investor concerns about events in Greece and China,” says Sean Becketti, Freddie Mac’s chief economist. “Mortgage rates fell as well, although not by as much as government bond yields. The rate on 30-year fixed-rate mortgages fell 4 basis points to 4.04 percent. Overseas volatility is likely to persist for some time, providing some restraint on potential U.S. rate increases.”

Freddie Mac reports the following national averages for the week ending July 9:

  • 30-year fixed-rate mortgages: averaged 4.04 percent, with an average 0.6 point, dropping from last week’s 4.08 percent average. A year ago, 30-year rates averaged 4.15 percent.
  • 15-year fixed-rate mortgages: averaged 3.20 percent, with an average 0.5 point, dropping from last week’s 3.24 percent average. Last year at this time, 15-year rates averaged 3.24 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.93 percent, with an average 0.4 point, dropping from last week’s 2.99 percent average. A year ago, 5-year ARMs averaged 2.99 percent.1-year ARMs: averaged 2.50 percent, with an average 0.3 point, dropping from last week’s 2.52 percent average. A year ago, 1-year ARMs averaged 2.40 percent.

Source: Freddie Mac

Home Loan Interest Rates Remain Near 2013 Lows

Average fixed-rate mortgages are holding near historical lows, but did inch higher this week, Freddie Mac reports in its weekly mortgage market survey.

The economy added 257,000 new jobs in January, following additional increases in December (329,000) and November (423,000).

Despite this week’s uptick in rates, fixed-rate mortgages remain near lows from May 23, 2013, Freddie Mac reports.

Freddie Mac reports the following mortgage rates for the week ending Feb. 12:

  • 30-year fixed-rate mortgages: averaged 3.69 percent, with an average 0.6 point up from last week’s 3.59 percent average. A year ago, 30-year rates averaged 4.28 percent.
  • 15-year fixed-rate mortgages: averaged 2.99 percent, with an average 0.6 point, rising from last week’s 2.92 percent average. Last year at this time, 15-year rates averaged 3.33 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.97 percent, with an average 0.5 point, up from last week’s 2.82 percent average. A year ago, 5-year ARMs averaged 3.05 percent.

Source: Freddie Mac

Mortgage Rates Kick Off 2015 at 20-Month Low!

Borrowing costs moved even lower this week, with the 30-year fixed-rate mortgage averaging 3.73 percent, its lowest average since May 2013.

“Mortgage rates fell to begin the year as 10-year Treasury yields slid beneath 2 percent for the first time in three months,” says Frank Nothaft, Freddie Mac’s chief economist. “Meanwhile, the Fed minutes indicated ongoing discussion regarding the timing of the first rate hike.” Many housing economists have predicted that mortgage rates will rise sometime this year, with the 30-year fixed-rate mortgage likely reaching the upper 4 percent or 5 percent range by the end of the year.

Freddie Mac reports the following national averages for the week ending Jan. 8:

  • 30-year fixed-rate mortgages: averaged 3.73 percent this week, with an average 0.6 point, dropping from last week’s 3.87 percent average. The 30-year rate has not averaged this low since May 23, 2013, when it was 3.59 percent. A year ago at this time, 30-year rates averaged 4.51 percent.
  • 15-year fixed-rate mortgages: averaged 3.05 percent, with an average 0.5 point, dropping from last week’s 3.15 percent average. Last year at this time, 15-year rates averaged 3.56 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.98 percent, with an average 0.5 point, dropping from last week’s 3.01 percent average. A year ago, 5-year ARMs averaged 3.15 percent.

Source: Freddie Mac

Home Loan Interest Rates End 2014 Near Yearly Lows

Mortgage rates defied forecasts in 2014 by not inching up to 5 percent as predicted during the year. Instead, the 30-year fixed-rate mortgage is still hovering under 4 percent.

The 30-year fixed-rate mortgage, the most popular loan among home buyers, remained below 4 percent for every week except for two since Oct. 16, Freddie Mac reports.

Despite fixed-rate mortgages ticking up slightly this week, rates remain near 2014 lows, according to Freddie Mac’s weekly mortgage market survey. Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 31, 2014:

  • 30-year fixed-rate mortgages: averaged 3.87 percent, with an average 0.6 point, rising from last week’s 3.83 percent average. Last year at this time, 30-year rates averaged 4.53 percent. The 30-year fixed-rate mortgage reached a record low on Nov. 21, 2012, when it averaged 3.31 percent.
  • 15-year fixed-rate mortgages: averaged 3.15 percent, with an average 0.6 point, rising from last week’s 3.10 percent average. A year ago, 15-year rates averaged 3.55 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.01 percent, with an average 0.5 point, holding the same average as last week. Last year at this time, 5-year ARMs averaged 3.05 percent.

Source: Freddie Mac

30-Year Mortgage Rates ‘Fall Back’ to Yearly Lows

Borrowing costs were down once again this week, giving home buyers another opportunity to lock in some of the lowest rates of the year.

Freddie Mac reported the following rate averages for the week ending Oct. 9:

  • 30-year fixed-rate mortgages: averaged 4.12 percent, with an average 0.5 point, dropping from last week’s 4.19 percent average. Last year at this time, 30-year rates averaged 4.23 percent.
  • 15-year fixed-rate mortgages: averaged 3.30 percent, with an average 0.5 pont, dropping from last week’s 3.36 percent average. Last year at this time, 15-year rates averaged 3.31 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.05 percent, with an average 0.5 point, dropping from last week’s 3.06 percent average. A year ago, 5-year ARMs averaged 3.05 percent.

Source: Freddie Mac

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)