Sep 21, 2012 | Mortgage Rates
For the first time in 9 weeks, mortgage rates have made new lows.
According to Freddie Mac’s weekly Primary Mortgage Market Survey, the average 30-year fixed rate mortgage rate fell 6 basis points to 3.49% this week, tying the all-time low set in late-July. The 15-year fixed rate mortgage also dropped, moving to 2.77%. This, too, marks an all-time low.
The Federal Reserve’s plan to pressure mortgage rates down may be working.
However, depending on where you live, your access to these all-time rates may be limited. This is because the Freddie Mac “published rate” is a national average based on the government-backed group’s survey of more 125 banks.
Mortgage rates can vary by region.
For example, this week, mortgage applicants in the West Region are most likely to get the lowest rates of anyone.
In the West Region, 30-year fixed rate mortgage rates are averaging 3.43 percent with an accompanying 0.6 discount points. By contrast, applicants in the Southeast Region are most likely to get the highest rates with the 30-year fixed rate mortgage is averaging 3.53% with an accompanying 0.7 discount points.
1 discount point is a fee equal to one percent of your loan size. Loans with more accompanying discount points pay higher total closing costs.
This week’s record-low rates are a boon to home affordability and, as compared to last September, mortgage rates are much improved :
- September 2011 : Average rate of 4.09%
- September 2012 : Average rate of 3.49%
Over the past 12 months, this 60-basis point mortgage rate improvement has increased the maximum purchase price of a Worcester County area home buyer by roughly 7%. Home prices, however, may soon catch up.
Earlier this week, the Census Bureau reported Housing Starts at a multi-year high and the Existing Home Sales report from the National Association of REALTORS® showed the same. Housing is in recovery and prices are on an upward trajectory.
Take advantage of low mortgage rates while they last. Talk to your loan officer today.
Sep 10, 2012 | Mortgage Rates
Mortgage markets worsened slightly in last week’s holiday-shortened week. As expected, Wall Street took its cues from Europe and from the U.S. jobs market, and mortgage rates moved across a wide range.
Home buyers in Worcester County area and would-be refinancing households were greeted with wildly varying mortgage rates, depending on which day they loan-shopped.
According to Freddie Mac’s weekly mortgage rate survey, 30-year fixed rate mortgage rates averaged 3.55% nationwide last week, with an accompanying 0.7 discount points.
That is, until Thursday’s meeting of the European Central Bank. (more…)
Sep 4, 2012 | Mortgage Rates
Mortgage markets improved last week for the second consecutive week.
With no news coming from Europe, Wall Street was focused U.S. economic data and Federal Reserve Chairman Ben Bernanke’s planned public speech from the Fed’s annual retreat in Jackson Hole, Wyoming.
Rate shoppers and home buyers in Massachusetts caught a break.
The housing market was shown to be improving last week, as was the average household income nationwide — two events which would have typically moved Massachusetts mortgage rates higher. But, because the Fed Chairman used his speech to signal that new economic stimulus may be imminent, mortgage rates dropped.
The Fed is expected to launch a bond-buying program that would create new demand for mortgage-backed bonds. Mortgage-backed bonds are the basis for most U.S. mortgage rates and the new-found demand would result in lower rates nationwide. (more…)
Aug 31, 2012 | Mortgage Rates
After 4 weeks of rising costs, Worcester County area mortgage rates finally recede.
According to Freddie Mac’s weekly Primary Mortgage Market Survey, the average 30-year fixed rate mortgage rate dropped 7 basis points to 3.59% this week. Depending on where you live, however, you may find that your offered mortgage rates varies. Freddie Mac’s “published rate” is a national average based on a survey of more 125 banks.
The rates you receive as an individual vary by bank, and vary by region.
Mortgage applicants in the North Central Region were most likely to get the lowest rates of all applicants nationwide last week. By contrast, applicants in the Southeast Region were most likely to get the highest rates. (more…)
Aug 17, 2012 | Mortgage Rates
Mortgage rates in Worcester County area keep on rising.
According to Freddie Mac’s weekly Primary Mortgage Market Survey, for the third straight week, the 30-year fixed rate mortgage rate rose, this time tacking on 3 basis points on a week-over-week basis to 3.62%, on average, nationwide. The 3.62% mortgage rate is available to mortgage applicants willing to pay 0.6 discount points plus a full set of closing costs.
Freddie Mac’s published mortgage rates are compiled from a 125-bank survey.
Looking back, it appears that national 30-year fixed rate mortgage rates bottomed at 3.49% in late-July. In the weeks leading up to that bottom, mortgage rates had dropped in 11 of 12 weeks. Since then, however, mortgage rate have increased steadily, climbing to a 7-week high, depending on where you live. (more…)
Aug 3, 2012 | Mortgage Rates
Mortgage rates couldn’t fall forever, it seems.
This week, for the first time since mid-June, the 30-year fixed rate mortgage rate climbed on a week-over-week basis, moving 6 basis points to 3.55%, on average, nationwide.
According to Freddie Mac, 3.55 percent is the highest average rate at which the benchmark product has been offered in close to 4 weeks.
The Freddie Mac published mortgage rate is available for prime borrowers willing to pay a full set of closing costs plus an accompanying 0.7 discount points.
Discount points are a one-time, upfront mortgage loan fee to be paid at closing where 1 discount point is equal to one percent of your loan size. In this way, a Worcester County area home buyer who pays (more…)
