Mortgage Rates Inch Up This Week

 
March 8, 2019

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After weeks of declines, mortgage rates reversed course, but are still lower than a year ago.

“While mortgage rates very modestly rose to 4.41 percent this week, they remain below year-ago levels for the fourth week in a row,” says Sam Khater, Freddie Mac’s chief economist. “In late 2018, mortgage rates rose over a full percentage point from the prior year, which was one of the main reasons that weakness in home sales continued into early 2019. However, the impact of recent lower rates and a strong labor market has led to a rise in purchase mortgage demand as we start the spring home-buying season.”

Freddie Mac reports the following national averages with mortgage rates for the week ending March 7:

  • 30-year fixed-rate mortgages: averaged 4.41 percent,with an average 0.5 point, rising from last week’s 4.35 percent average. Last year at this time, 30-year rates averaged 4.46 percent.
  • 15-year fixed-rate mortgages: averaged 3.83 percent, with an average 0.4 point, rising from last week’s 3.77 percent average. A year ago, 15-year rates averaged 3.94 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.87 percent, with an average 0.3 point, rising from last week’s 3.84 percent average. A year ago, 5-year ARMs averaged 3.63 percent.
 
 
February 22, 2019

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Mortgage rates inched lower for the third consecutive week. Freddie Mac Chief Economist Sam Khater says the lower rates bode well for the spring home buying season, typically the busiest time of the year for home shopping.

“Mortgage rates … [are] continuing the general downward trend that began late last year,” Khater says. “Wages are growing on par with home prices for the first time in years, and with more inventory available, spring home sales should help the market begin to recover from the malaise of the last few months.” The National Association of REALTORS® reported this week that more houses were on the market in January, rising to 1.59 million nationwide and at a 3.9-month supply at the current sales pace.

Freddie Mac reports the following national averages for mortgage rates for the week ending Feb. 21:

  • 30-year fixed-rate mortgages: averaged 4.35 percent ,with an average 0.5 point, dropping from last week’s 4.37 percent average. Last year at this time, 30-year rates averaged 4.40 percent.
  • 15-year fixed-rate mortgages: averaged 3.78 percent, with an average 0.4 point, falling from last week’s 3.81 percent average. A year ago at this time, 15-year rates averaged 3.85 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.84 percent, with an average 0.3 point, falling from last week’s 3.88 percent average. A year ago, 5-year ARMs averaged 3.65 percent.

 

Mortgage Rates Drop to Lowest Levels in a Year

 
February 15, 2019

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Cooling inflation and slower global economic growth prompted mortgage rates to drift down to the lowest levels in a year, Freddie Mac reports.

“While housing activity has clearly softened over the last nine months and the lingering effects of higher rates from last year are still being felt, lower mortgage rates and a strong job market should rekindle demand for the spring home buying season,” says Sam Khater, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages with mortgages for the week ending Feb. 14:

  • 30-year fixed-rate mortgages: averaged 4.37 percent, with an average 0.4 point, dropping from last week’s 4.41 percent average. A year ago, 30-year rates averaged 4.38 percent.
  • 15-year fixed-rate mortgages: averaged 3.81 percent, with an average 0.4 point, falling from last week’s 3.84 percent average. A year ago, 15-year rates averaged 3.84 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.88 percent, with an average 0.3 point, falling from last week’s 3.91 percent average. A year ago, 5-year ARMs averaged 3.63 percent.

 

Mortgage Rates Fall to 10-Month Low

February 8, 2019

® REALTOR® Magazine

 

Borrowing costs were cheaper this week, as mortgage rates continued inching down. “The U.S. economy remains on solid ground, inflation is contained, and the threat of higher short-term rates is fading from view, which has allowed mortgage rates to drift down to their lowest level in 10 months,” says Sam Khater, Freddie Mac’s chief economist. “This is great news for consumers who will be looking for homes during the upcoming spring homebuying season. Mortgage rates are essentially similar to a year ago, but today’s buyers have a larger selection of homes and more consumer bargaining power than they did the last few years.”

Freddie Mac reports the following averages with mortgage rates for the week ending Feb.7:

  • 30-year fixed-rate mortgages: averaged 4.41 percent, with an average 0.4 point, dropping from last week’s 4.46 percent average. Last year at this time, 30-year rates averaged 4.32 percent.
  • 15-year fixed-rate mortgages: averaged 3.84 percent, with an average 0.4 point, dropping from last week’s 3.89 percent average. A year ago, 15-year rates averaged 3.77 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.91 percent, with an average 0.3 point, falling from last week’s 3.96 percent average. A year ago, 5-year ARMs averaged 3.57 percent.

 

Mortgage Rates Inch Up, But Don’t Be Worried

 
February 1, 2019

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After weeks of moderating, mortgage rates moved up slightly this week. But aspiring home buyers may be able to breathe a sigh of relief: Freddie Mac economists revised their forecasts this week to predict 30-year fixed-rate mortgages to average below the 5 percent threshold for at least the next two years.

That will bode well for the housing market, which has become very rate sensitive. With mortgage rates slightly up this week, purchase applications for mortgages fell this week after soaring early this year, notes Sam Khater, Freddie Mac’s chief economist.

“However, softening house price appreciation along with increasing inventory of homes on the market—and historically low mortgage rates—should give a boost to the spring homebuying season,” Khater says.

The following are the national averages with mortgage rates for the week ending Jan. 31:

  • 30-year fixed-rate mortgages: averaged 4.46 percent, with an average 0.5 point, rising from last week’s 4.45 percent average. Last year at this time, 30-year rates averaged 4.22 percent.
  • 15-year fixed-rate mortgages: averaged 3.89 percent, with an average 0.4 point, increasing from last week’s 3.88 percent average. A year ago, 15-year rates averaged 3.68 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.96 percent, with an average 0.3 point, rising from last week’s 3.90 percent average. A year ago, the 5-year ARM averaged 3.53 percent.

 

For Third Week, Mortgage Rates Hold Steady

January 25, 2019

 

 

Mortgage rates have mostly stabilized this month and are now essentially at the same point they were last spring, but that hasn't yet given a boost to home sales, which declined over the same period.

“Given that the economy remains on solid footing and weekly mortgage purchase application activity has been strong so far in 2019, we expect the decline in home sales to moderate or even reverse over the next couple of months,” says Sam Khater, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages for mortgage rates in the week ending Jan. 24:

  • 30-year fixed-rate mortgages: averaged 4.45 percent, with an average 0.4 point, unchanged from last week. Last year at this time, 30-year rates averaged 4.15 percent.
  • 15-year fixed-rate mortgages: averaged 3.88 percent, with an average 0.4 point, holding the same as last week. A year ago, 15-year rates averaged 3.62 percent.
  • 5-year hybrid adjustable-rate mortgages (ARMs): averaged 3.90 percent, with an average 0.3 point, rising from last week’s 3.87 percent average. A year ago, 5-year ARMs averaged 3.52 percent.

 

Will Lower Mortgage Rates Escalate Sales Gains?

 
January 18, 2019

 

 

The real estate industry will soon see what kind of impact weeks of declining mortgage rates have had on home sales. Will it provide the boost some experts are predicting?

Since early November, the 30-year fixed-rate mortgage has fallen nearly half a percentage point, from 4.94 percent to 4.45 percent, where it stood at the end of this week. This could provide an important incentive for potential home buyers to make a move. The 30-year rate, which didn’t budge in the latest week of reporting, was on a downward trend for six consecutive weeks prior. Existing-home sales in November were already bouncing back from unusually low volume in the summer months, gaining 1.9 percent month over month, due largely to stability in the overall economy, according to data from the National Association of REALTORS®. But when NAR’s data for December existing-home sales is released Tuesday, it may reveal whether lower mortgage rates have escalated sales gains.

NAR Chief Economist Lawrence Yun told Yahoo! Finance on Thursday that he expects recent declines in mortgage rates to keep home sales on an upward track—possibly leading to an additional 200,000 transactions this year. “Buyers will want to take advantage of the lower rates,” Yun says. “This additional demand will help absorb inventory. Both home prices and home sales will be lifted.”

Though rates were flat in the latest week, due largely to weaker manufacturing data and a prediction that the Federal Reserve will leave its benchmark interest rate alone for now, other industry experts echo Yun’s positive outlook. “Interest rate-sensitive sectors of the economy—such as consumer mortgage demand and homebuilder construction sentiment—are on the mend, which indicates that lower interest rates are beginning to have a positive impact on some segments of the economy,” says Sam Khater, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 17:

  • 30-year fixed-rate mortgages: averaged 4.45 percent, with an average 0.4 point, unchanged from last week’s average. Last year at this time, 30-year rates averaged 4.04 percent.
  • 15-year fixed-rate mortgages: averaged 3.88 percent, with an average 0.4 point, dropping from last week’s 3.89 percent average. A year ago, 15-year rates averaged 3.49 percent.
  • 5-year hybrid adjustable-rate mortgages (ARMs): averaged 3.87 percent, with an average 0.3 point, rising slightly from last week’s 3.83 percent average. A year ago, 5-year ARMs averaged 3.46 percent.

 

Mortgage Rates Fall to 9-Month Lows

 
January 11, 2019

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Mortgage rates posted more drops this week, lowering the borrowing costs of potential home shoppers and refinancers. Rates are now at a nine-month low, which helped boost mortgage applications more than 20 percent this week.

“Lower mortgage rates combined with continued income growth and lower energy prices are all positive indicators for consumers that should lead to a firming of home sales,” says Sam Khater, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 10:

  • 30-year fixed-rate mortgages: averaged 4.45 percent, with an average 0.5 point, falling from last week’s 4.51 percent average. Last year at this time, 30-year rates averaged 3.99 percent.
  • 15-year fixed-rate mortgages: averaged 3.89 percent, with an average 0.4 point, dropping from last week’s 3.99 percent average. A year ago, 15-year rates averaged 3.44 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.83 percent, with an average 0.3 point, dropping from last week’s 3.98 percent average. A year ago, 5-year ARMs averaged 3.46 percent.

 

How About a Lower Mortgage Rate to Ring in the New Year?

 
January 4, 2019

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The new year is kicking off with lower mortgage rates for home shoppers and people looking to refinance their mortgages. The benchmark 30-year fixed-rate mortgage dipped to a 4.51 percent average this week, Freddie Mac reports.

“Low mortgage rates combined with decelerating home price growth should get prospective home buyers excited to buy,” says Sam Khater, Freddie Mac’s chief economist. “However, it will be interesting to see how the recent turmoil in the stock market will affect homebuying activity in the coming months.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 3:

  • 30-year fixed-rate mortgages: averaged 4.51 percent, with an average 0.5 point, falling from last week’s 4.55 percent average. Last year at this time, 30-year rates averaged 3.95 percent.
  • 15-year fixed-rate mortgages: averaged 3.99 percent, with an average 0.4 point, dropping from last week’s 4.01 percent average. A year ago, 15-year rates averaged 3.38 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.98 percent, with an average 0.2 point, dropping from last week’s 4 percent average. A year ago, 5-year ARMs averaged 3.45 percent.
Source: 

 

Low Mortgage Rates Make for Surprising Holiday Gift

 
December 21, 2018

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Mortgage rates moderated this week after posting a big drop last week, and the Federal Reserve’s decision on Wednesday to raise its short-term key interest rate hasn't had much on an effect on rates. (The Fed’s key rate is not directly tied to mortgage rates, but does often influence it.) 

“The response to the recent decline in mortgage rates is already being felt in the housing market,” says Sam Khater, Freddie Mac’s chief economist. “After declining for six consecutive months, existing home sales finally rose in October and November and are essentially at the same level as during the summer months. This modest rebound in sales indicates that home buyers are very sensitive to mortgage rate changes—and given the further drop in rates we’ve seen this month, we expect to see a modest rebound in home sales as well.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 20:

  • 30-year fixed-rate mortgages: averaged 4.62 percent, with an average 0.4 point, dropping slightly from last week’s 4.63 percent average. Last year at this time, 30-year rates averaged 3.94 percent.
  • 15-year fixed-rate mortgages: averaged 4.07 percent, with an average 0.4 point, unchanged from last week. A year ago, 15-year rates averaged 3.38 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.98 percent, with an average 0.3 point, falling from last week’s 4.04 percent average. A year ago, 5-year ARMs averaged 3.39 percent.
Source: 

 

Mortgage Rates Sink to Three-Month Lows

 

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Home shoppers and refinancers saw some relief in mortgage borrowing costs this week. The 30-year fixed-rate mortgage moved to its lowest average since mid-September, Freddie Mac reports.

“Mortgage rates have either fallen or remained flat for five consecutive weeks and purchase applicants are responding with an uptick in demand given these lower rates,” says Sam Khater, Freddie Mac’s chief economist. “While the housing market softened in response to higher rates through most of this year, the combination of a low unemployment and recent downdraft in rates should support home sales heading into the early winter months.”

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

  • 30-year fixed-rate mortgages: averaged 4.63 percent, with an average 0.5 point, falling from last week’s 4.75 percent average. Last year at this time, 30-year rates averaged 3.93 percent.
  • 15-year fixed-rate mortgages: averaged 4.07 percent, with an average 0.5 point, falling from last week’s 4.21 percent average. A year ago, 15-year rates averaged 3.36 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 4.04 percent, with an average 0.3 point, falling from last week’s 4.07 percent average. A year ago, 5-year ARMs averaged 3.36 percent.
Source: 

 

Mortgage Rates Are Easing

 
December 7, 2018

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Home buyers may be finding a window of opportunity to lock in lower rates. Mortgage rates fell this week, after several weeks of moderating, Freddie Mac reports.

“Mortgage rates declined this week amid a steep sell-off in U.S. stocks,” says Sam Khater, Freddie Mac’s chief economist. “This week’s rate reaction to the volatile stock market is a welcome relief to prospective home buyers who have recently experienced rising rates and rising home prices.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Dec. 6:

  • 30-year fixed-rate mortgages: averaged 4.75 percent, with an average 0.5 point, down from last week’s 4.81 percent average. Last year at his time, 30-year rates averaged 3.94 percent.
  • 15-year fixed-rate mortgages: averaged 4.21 percent, with an average 0.4 point, falling from last week’s 4.25 percent average. A year ago, 15-year rates averaged 3.36 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 4.07 percent, with an average 0.3 point, a decrease from last week’s 4.12 percent average. A year ago, 5-year ARMs averaged 3.36 percent.
Source: 

 

Buyers Pounce on Stabilizing Mortgage Rates

November 30, 2018

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Mortgage rates mostly held steady this week—and homebuyers responded by rushing to lock in rates. The 30-year fixed-rate mortgage averaged 4.81 percent, Freddie Mac reports.

“Mortgage rates stabilized the last couple of months as interest rate-sensitive sectors, such as new auto and home sales, have clearly softened the outlook for the economy,” says Sam Khater, Freddie Mac’s chief economist. “Homebuyers pounced on the stability in rates as purchase mortgage applications increased, which indicates that despite higher mortgage rates this year, there are buyers on the fence waiting for the right time to buy.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 29:

  • 30-year fixed-rate mortgages: averaged 4.81 percent, with an average 0.5 point, unchanged from last week. Last year at this time, 30-year rates averaged 3.90 percent.
  • 15-year fixed-rate mortgages: averaged 4.25 percent, with an average 0.4 point, rising from last week’s 4.24 percent average. A year ago, 15-year rates averaged 3.30 percent.
  • 5-year hybrid adjustable-rate mortgages (ARMs): averaged 4.12 percent, with an average 0.3 point, increasing from last week’s 4.09 percent average. A year ago, 5-year ARMs averaged 3.32 percent.
Source: 

 

Mortgage Rates Take a Breather from Hikes

November 16, 2018

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Mortgage rates mostly held stable this week, a welcome relief to home buyers.

“Despite recent market volatility, mortgage rates remained steady this week,” says Sam Khater, Freddie Mac’s chief economist. “The stability in mortgage rates reflects the moderation in inflationary pressures in the economy due to the lower oil prices and subdued wage growth. On the margin, lower energy costs are a positive for the home sales market, particularly for lower-middle income suburban buyers who spend proportionately more income on transportation costs.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 15:

  • 30-year fixed-rate mortgages: averaged 4.94 percent, with an average 0.5 point, unchanged from last week’s average. Last year at this time, 30-year rates averaged 3.95 percent.
  • 15-year fixed-rate mortgages: averaged 4.36 percent, with an average 0.4 point, increasing slightly from last week’s 4.33 percent average. A year ago, 15-year rates averaged 3.31 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 4.14 percent with an average 0.3 point, unchanged from last week. A year ago, 5-year ARMs averaged 3.21 percent.
Source: 

 

Mortgage Rates Roll Back This Week

November 2, 2018

 

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Mortgage rates took a slight breather this week as borrowing costs moved lower and offset last week’s uptick.

Still, the housing market is trying to adjust to rates that are much higher than a year ago. “While higher mortgage rates have led to a decline in home sales this year, the weakness has been concentrated in expensive segments versus entry-level and first-time buyer [segments], which remain firm throughout most of the rest of the country,” says Sam Khater, Freddie Mac’s chief economist. “Despite higher mortgage rates, the monthly mortgage payment remains affordable. For many buyers the chronic lack of entry-level supply is a larger hurdle than higher mortgage rates because choices are limited and the inventory shortage has caused home prices to rise well above fundamentals.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 1:

  • 30-year fixed-rate mortgages: averaged 4.83 percent, with an average 0.5 point, dropping from last week’s 4.86 percent average. Last year at this time, 30-year rates averaged 3.94 percent.
  • 15-year fixed-rate mortgages: averaged 4.23 percent, with an average 0.5 point, falling from last week’s 4.29 percent average. A year ago, 15-year rates averaged 3.27 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 4.04 percent, with an average 0.3 point, down from last week’s 4.14 percent average. A year ago, 5-year ARMs averaged 3.23 percent.

Source: 

Freddie Mac

 

Mortgage Rates Drop Slightly for First Time in 5 Weeks

October 5, 2018

Borrowers saw a slight cool down in mortgage rates this week following last week’s seven-year high. The 30-year fixed-rate mortgage dipped for the first time after five consecutive weeks of increases, averaging 4.71 percent.

But the higher rates may be deterring some would-be home buyers. “The strength in the economy has failed to translate to gains in the housing market as higher mortgage rates have contributed to the decrease in home purchase applications, which are down from a year ago,” says Sam Khater, Freddie Mac’s chief economist. “With mortgage rates expected to track higher, it’s going to be a challenge for the housing market to regain momentum.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 4:

  • 30-year fixed-rate mortgages: averaged 4.71 percent, with an average 0.4 point, falling slightly from last week’s 4.72 percent average. Last year at this time, 30-year rates averaged 3.85 percent.
  • 15-year fixed-rate mortgages: averaged 4.15 percent, with an average 0.4 point, decreasing from last week’s 4.16 percent average. A year ago, 15-year rates averaged 3.15 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 4.01 percent, with an average 0.3 point, rising from last week’s 3.97 percent average. A year ago, 5-year ARMs averaged 3.18 percent.

 

Mortgage Rates Surge to 7-Year High After Fed Hike

September 28, 2018

Mortgage rates surged to their highest averages since 2011 following the Federal Reserve’s announcement Wednesday that it is raising its benchmark interest rate by a quarter point. The 30-year fixed-rate mortgage jumped to 4.72 percent, up from 4.65 percent last week.

 
“The robust economy, rising Treasury yields, and the anticipation of more short-term rate hikes caused mortgage rates to move up,” says Freddie Mac Chief Economist Sam Khater. “Even with these higher borrowing costs, it’s encouraging to see that prospective buyers appear to be having a little more success. With inventory constraints and home prices starting to ease, purchase applications have now trended higher on an annual basis for six straight weeks.”

Khater also notes that consumer confidence is at an 18-year high, and job gains continue to hold steady. “These two factors should keep demand up in the coming months, but at the same time, home shoppers will likely deal with even higher mortgage rates,” Khater says. Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 27:

  • 30-year fixed-rate mortgages: averaged 4.72 percent, with an average 0.5 point, rising from last week’s 4.65 percent average. Last year at this time, 30-year rates averaged 3.83 percent.
  • 15-year fixed-rate mortgages: averaged 4.16 percent, with an average 0.5 point, rising from last week’s 4.11 percent average. A year ago, 15-year rates averaged 3.13 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.97 percent, with an average 0.3 point, rising from last week’s 3.92 percent average. A year ago, 5-year ARMs averaged 3.20 percent.

 

Mortgage Rates Fall for Third Straight Week

August 24, 2018

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Borrowers continued to get relief with mortgage rates this week, as the 30-year fixed-rate mortgage sank lower for the third consecutive week. Mortgage rates are now at their lowest level since mid-April.

“Backed by very strong consumer spending, the economy is red-hot this month, which is in turn rippling through the financial markets and driving equities higher,” says Sam Khater, Freddie Mac’s chief economist. “Unfortunately, the same cannot be said about the housing market, where it appears sales activity crested in late 2017. Existing-home sales have now stepped back annually for the fifth straight month, and purchase mortgage applications this week were barely above year ago levels.”

Khater notes that “it is clear affordability constraints” have cooled the housing market, particularly in expensive coastal markets. “Many metro areas desperately need more new and existing affordable inventory to break out of this slump,” he notes.

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 23:

  • 30-year fixed-rate mortgages: averaged 4.51 percent, with an average 0.5 point, falling from last week’s 4.53 percent average. Last year at this time, 30-year rates averaged 3.86 percent.
  • 15-year fixed-rate mortgages: averaged 3.98 percent, with an average 0.5 point, falling from last week’s 4.01 percent average. A year ago, 15-year rates averaged 3.16 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.82 percent, with an average 0.3 point, down from last week’s 3.87 percent average. A year ago, 5-year ARMs averaged 3.17 percent.

 

 

Dip in Rates Provides ‘Stability’ for Home Sales

Borrowers saw a little relief from recent increases. Mortgage rates dropped slightly this week, with the 30-year fixed-rate mortgage averaging 4.59 percent, Freddie Mac reports.

“This stability is much needed for home sales, which have crested because of the multiyear run up in prices, tight affordable inventory, and this year’s higher rates,” says Sam Khater, Freddie Mac’s chief economist. “Going forward, the strong economy will support the housing market, but with affordability pressures mounting, further spikes in mortgage rates will lead to continued softening in home price growth.”

Home prices are still climbing and rates are up from 3.90 percent a year ago. “Some prospective buyers are definitely feeling an affordability crunch,” Khater says.

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 9:

  • 30-year fixed-rate mortgages: averaged 4.59 percent, with an average 0.5 point, dropping from last week’s 4.60 percent average. Last year at this time, 30-year rates averaged 3.90 percent.
  • 15-year fixed-rate mortgages: averaged 4.05 percent, with an average 0.5 point, falling from last week’s 4.08 percent average. A year ago, 15-year rates averaged 3.18 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.90 percent, with an average 0.3 point, falling from last week’s 3.93 percent average. A year ago, 5-year ARMs averaged 3.14 percent.

 

Mortgage Rates Continue to Slide This Week

Mortgage rates were mostly in a holding pattern this week, but still eked out the first increase since early June.

Overall, mortgage rates this summer have been dropping the past few weeks after sharp rises this spring. “A record number of people quit their job last month, most likely for a new opportunity with higher wages and better benefits,” says Sam Khater, Freddie Mac’s chief economist. “This positive trend, along with these lower mortgage rates, should increasingly give some previously priced-out prospective home buyers the financial wherewithal to resume their home search.”

Freddie Mac reports the following national averages with mortgage rates for the week ending July 12:

  • 30-year fixed-rate mortgages: averaged 4.53 percent for the week, up from last week’s 4.52 percent average. Last year at this time, 30-year rates averaged 4.03 percent.
  • 15-year fixed-rate mortgages: averaged 4.02 percent this week, up from last week’s 3.99 percent average. A year ago, 15-year fixed-rates averaged 3.29 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.86 percent this week, down from 3.74 percent a week ago. A year ago, 5-year ARMs averaged 3.28 percent.

June 29, 2018

Falling Mortgage Rates Offer Affordability Relief

Mortgage rates declined this week, marking the fourth drop in the past five weeks, Freddie Mac reports.

“The decrease in borrowing costs is a nice slice of relief for prospective buyers looking to get into the market this summer,” says Sam Khater, Freddie Mac’s chief economist. “Some are undoubtedly feeling the affordability hit from swift price appreciation and mortgage rates that are still 67 basis points higher than this week a year ago.”

Overall, Khater says the economy and the housing market are on “solid footing” this summer, which should support continued strength in housing demand. “Home price growth is still high, but is expected to moderate, and while sales activity has slowed, it’s primarily because of stubbornly low supply,” Khater says.

Freddie Mac reports the following national averages with mortgage rates for the week ending June 28:

  • 30-year fixed-rate mortgages: averaged 4.55 percent, with an average 0.5 point, falling from last week’s 4.57 percent average. Last year at this time, 30-year rates averaged 3.88 percent.
  • 15-year fixed-rate mortgages: averaged 4.04 percent, with an average 0.5 point, which is unchanged from a week ago. Last year at this time, 15-year rates averaged 3.17 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.87 percent, with an average 0.3 point, rising from last week’s 3.83 percent average. A year ago, 5-year ARMs averaged 3.17 percent.
 

 

June 21, 2018

Mortgage Rates Drop Again This Week

 

Borrowers found lower mortgage rates again this week, marking the third decrease in rates in the past four weeks.

“After a sharp run-up in the early part of 2018, rates have stabilized over the last three months, with only a modest uptick since March,” says Sam Khater, Freddie Mac’s chief economist. “However, existing-home sales have hit a wall, declining in six of the last nine months on a year-over-year basis.”

The National Association of REALTORS® reported earlier this week that existing-home sales—completed transactions for single-family homes, townhomes, condos, and co-ops—dropped 0.4 percent to a seasonally adjusted annual rate of 5.43 million in May. Sales are now 3 percent lower than a year ago. Home prices also reached a new all-time high last month—a median of $264,800.

“Persistently low supply levels, and not this year’s climb in mortgage rates, are handcuffing sales—especially at the lower end of the market,” Khater says. “Home shoppers can’t buy inventory that doesn’t exist.”

Freddie Mac reports the following national averages with mortgage rates for the week ending June 21:

  • 30-year fixed-rate mortgages: averaged 4.57 percent, with an average 0.5 point, falling from last week’s 4.62 percent average. Last year at this time, 30-year rates averaged 3.90 percent.
  • 15-year fixed-rate mortgages: averaged 4.04 percent, with an average 0.4 point, falling from last week’s 4.07 percent average. A year ago, 15-year rates averaged 3.17 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.83 percent, with an average 0.3 point, unchanged from a week ago. A year ago, 5-year ARMs averaged 3.14 percent.
 

June 15, 2018

Mortgage rates were back on the rise this week, increasing to their second highest level this year. The move follows the Federal Reserve’s vote on Wednesday to raise its federal fund rate by 25 basis points

The 30-year fixed-rate mortgage followed suit, rising eight basis points to average 4.62 percent during the week, Freddie Mac reports. 

“The good news is that the impact on consumer budgets will be smaller than past rate hike cycles,” says Freddie Mac’s Chief Economist Sam Khater. “That is because a much smaller segment of mortgage loans in today’s market are pegged to short-term rate movements. The adjustable rate mortgage share of outstanding loans is a lot smaller now—8 percent versus 31 percent—than during the Fed’s last round of tightening between 2004 and 2006. Still, inflation continues to firm and borrowing costs are inching higher. Although wages are slowly growing, stronger gains would certainly go a long way in helping consumers offset these increases in prices and rates.” 

Freddie Mac reports the following national averages with mortgage rates for the week ending June 14: 

  • 30-year fixed-rate mortgages: averaged 4.62 percent, with an average 0.4 point, up from last week’s 4.54 percent average. Last year at this time, 30-year rates averaged 3.91 percent. 
  • 15-year fixed-rate mortgages: averaged 4.07 percent, with an average 0.4 point, rising from last week’s 4.01 percent average. A year ago, 15-year rates averaged 3.18 percent. 
  • 5-year hybrid adjustable-rate mortgages: averaged 3.83 percent, with an average 0.3 point, rising from last week’s 3.74 percent average. A year ago, 5-year ARMs averaged 3.15 percent. 

 

Mark Wilmot Realtor® Compass Real Estate

Ventura/L.A. Counties

Lic#01733107 805-279-3038

www.BeachBumLiving.com/ www.MarkWilmot.com/ www.BeachBumHomes.com

 




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