Tag Archives: Freddie Mac

30-Year Fixed Rate Mortgage Drops To 3.49% — An All-Time Low

Posted on by

Freddie Mac 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 Phoenixville 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.

What’s Ahead For Mortgage Rates This Week : September 10, 2012

Posted on by

FOMC meets this weekMortgage 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 Phoenixville 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. 

The ECB is similar to the Federal Reserve in that, among its primary functions, it provides liquidity to banking systems in times of crisis. Thursday, the European Central Bank intervened with force.

To aid Spain and Italy, the third- and fourth-largest Eurozone economies, the European Central Board launched a bond-buying program meant to reduce speculation that the two nations — and the Euro itself — would fail.

The move calmed investors and sparked a broad equities market rally.

U.S. mortgage rates did not fare so well, however, climbing as much as 0.25% and leaving that “Freddie Mac mortgage rate” in the dust. If you tried to lock a loan Thursday, you may have been greeted with a rate nearing 4.000 percent.

Fortunately, those rising rates were short-lived.

Friday morning, the U.S. Bureau of Labor Statistics released its August Non-Farm Payrolls report and mortgage rates dropped. Far fewer jobs were created in the U.S. than was expected. 96,000 net new jobs were made in July. Wall Street had expected 130,000. This increases the likelihood of new Fed-led stimulus — perhaps as soon as this week.

The Federal Open Market Committee meets for the 6th of eight times this year later this week; a 2-day get-together scheduled for September 12-13. The Fed may announce a new round of market stimulus. If it does, mortgage rates should fall. If it doesn’t, mortgage rates may rise.

Other news affecting potential housing payments this week includes the release of key inflation data Thursday and Friday, and Friday’s Retail Sales data.

Mortgage Rates Drop For The First Time In 4 Weeks

Posted on by

Freddie Mac mortgage rates

After 4 weeks of rising costs, Phoenixville 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.

Average mortgage rates in the five U.S. regions, as tracked by Freddie Mac :

  • Northeast Region : 3.59 percent for a 30-year fixed rate mortgage
  • West Region : 3.58 percent for a 30-year fixed rate mortgage
  • Southeast Region : 3.64 percent for a 30-year fixed rate mortgage
  • North Central Region : 3.57 percent for a 30-year fixed rate mortgage
  • Southwest Region : 3.61 percent for a 30-year fixed rate mortgage

Across all 5 regions, mortgage rates were quoted with an accompanying 0.6 discount points, on average, plus a full set of closing costs. 1 discount point is equal to one percent of your loan size. Closing costs vary by county.

One year ago, the 30-year fixed rate mortgage rate averaged 4.22%. Today, it averages 3.59%. This 63 basis point difference yields a $36 monthly savings per $100,000 borrowed. 

On a $250,000 mortgage, that’s $1,080 in savings per year.

If watched mortgage rates rise through August and felt as if you missed the market bottom, consider this week your second chance. The 30-year fixed rate mortgage does remains above its all-time low of 3.49 percent, but this week’s drop in rates in encouraging. It’s the biggest one-week drop in rates in more than 3 months.

Talk to your loan officer about how today’s mortgage rates can work for your budget. 

What’s Ahead For Mortgage Rates This Week : August 20, 2012

Posted on by

Jobs reportMortgage markets worsened for the third straight week last week as the U.S. economy showed new signs of expansion, and as little new news came from Europe.

August has been a rough month for rate shoppers. Since the start of the month, mortgage rates in Phoenixville have climbed steadily and are now at a 7-week high.

According to Freddie Mac’s weekly Primary Mortgage Market Survey, the 30-year fixed rate mortgage is 3.62% nationwide, on average, for homeowners willing to pay 0.6 discount points plus a full set of closing costs. 1 discount point is equal to one percent of your loan size.

Homeowners not wishing to pay discount points are seeing 30-year fixed rate mortgage rates as high 4.00%.

These are the highest mortgage rates since Independence Day.

This week, mortgage rates may continue to move higher. There is a bevy of economic data set for publication in addition to the Federal Reserve’s release of its July/August meeting minutes. Mortgage rates are expected to get more bumpy as the week progresses.

No data will be released Monday or Tuesday. During these first two days, expect momentum and sentiment to drive markets. Lately, both have favored “higher rates”.

Then, Wednesday morning, the National Association of REALTORS® releases its July Existing Home Sales report. Strong numbers will likely lead mortgage rates higher. That is, until that day’s 2:00 PM ET release of the Fed Minutes. This will be the week’s big market-mover.

Prior to its last meeting, the FOMC had said economic stimulus would be warranted given certain conditions and Wall Street took that to mean that the Federal Reserve was close to adding new stimulus. When the Fed did not add said stimulus August 1 as expected, mortgage rates rose.

The Fed Minutes will provide insight into some of the debate the shaped the discussion/non-discussion of new stimulus and, depending on what market sees, mortgage rates may rise or fall Wednesday — perhaps by a lot.

Then, on Thursday, the government releases its New Home Sales data for July. This, too, can influence mortgage rates.

If you’re not yet locked on a mortgage, it may be prudent to lock your rate in. Mortgage rates have trended higher this month, and may continue to move in that direction.

Mortgage Rates Rise For Third Straight Week

Posted on by

30-year fixed rates rise

Mortgage rates in Collegeville 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, though, rates have climbed steadily, moving to a 7-week high, depending on where you live. 

Mortgage rates vary by region. As reported by Freddie Mac, mortgage applicants in the South Region currently pay the highest rates. Applicants in the North Central currently pay the lowest.

  • Northeast Region : 3.62% with 0.6 discount points
  • West Region : 3.59% with 0.6 discount points
  • Southeast Region : 3.68% with 0.6 discount points
  • North Central Region : 3.58% with 0.6 discount points
  • Southwest Region : 3.66% with 0.6 discount points

Meanwhile, mortgage rates don’t figure to drop in the coming weeks. The same forces that drove mortgage rates down between January-July of this year are the same ones that are driving rates up today — expectations for new Federal Reserve-led stimulus.

Earlier this year, the economy was stalling; growing slowly, but not convincingly. This led to Wall Street speculation that the Federal Reserve would implement a bond-buying program that would lead mortgage rates down, among other outcomes. The Fed said it would do what is necessary to keep the economy on track which only served to fuel such speculation.

Last month, however, at the Federal Open Market Committee, Ben Bernanke & Co. did not add new stimulus, and seemed content to take a “wait-and-see” approach with the economy. And, since then, Europe appears to have put itself on-track and the U.S. economy has shown signs of expansion.   

This August rise in rates is Wall Street reversing its bets; making plans for no new stimulus at all.

Mortgage rates so remain low, though. If you’ve yet to join this year’s refinance boom, or if you’re hunting for a home, consider locking something in. In a few weeks, mortgage rates may be higher still.

What’s Ahead For Mortgage Rates This Week : August 6, 2012

Posted on by

Unemployment RateMortgage bonds worsened last week in a news- and event-heavy week. A series of non-action from the world’s central banks — including the Federal Reserve — plus a better-than-expected jobs report pushed mortgage rates to their highest levels in more than a month.

Conforming mortgage rates rose in King of Prussia and nationwide last week.

The week wasn’t without drama, however. Mortgage rates carved out a wide range.

When the week opened, mortgage markets were in a rally mode. The European Central Bank had previously said that it would do whatever was needed to preserve the European Union. However, details failed to emerge on that plan, leading to a “risk off” scenario in which investors moved money into the relative safety of bonds, a class which includes mortgage-backed securities.

Mortgage rates dropped Monday and Tuesday.

Then, Wednesday, beginning at 2:15 PM ET, mortgage rates spiked. The timing coincides with the end of the Federal Open Market Committee’s scheduled 2-day meeting and its statement to the markets. In it, the Fed said it will leave the Fed Funds Rate unchanged in its target range of 0.000-0.250%, and that it will not add new stimulus to the markets or the economy.

Wall Street had expected the Federal Reserve to launch new support for bond markets and, when the Fed chose against it, bond markets sold off, sending mortgage rates higher.

Thursday, mortgage rates, once again, slipped. This occurred after the European Central Bank emerged from a meeting with no clear plan to “save the Euro”. Markets believe the ECB will take some action, but because that action won’t happen right away, investors once more poured into the relative safety of mortgage bonds.

Lastly, on Friday, the U.S. Non-Farm Payrolls report showed 163,000 net new jobs added in July, far exceeding analyst expectations of 100,000 net new jobs. The surprise result sent stock markets soaring and bond markets sinking. The 30-year fixed rate mortgage rose all day, and is now at its highest level in close to 6 weeks.

Freddie Mac reported the 30-year fixed rate mortgage at 3.55% last week. It’s higher than that now.

This week, there isn’t much economic data on which for markets to move so expect to see rhetoric and momentum take center stage. Fed Chairman Ben Bernanke makes two public appearances and Eurozone leaders will continue to be in the news.

If you’re floating a mortgage rate right now, a prudent move may be to lock it.

Freddie Mac 30-Year Fixed Rate Mortgage Rates Rises To 3.55%

Posted on by

30-year fixed rate mortgage rateMortgage 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 Collegeville home buyer who pays one discount point at closing will be responsible for an additional $1,000 in closing costs per $100,000 borrowed.

However, although Freddie Mac says that the average mortgage rate is 3.55%, not everyone who applies for a conforming mortgage will get access to that rate. This is because Freddie Mac’s published rates are the ones offered to “prime” borrowers, the definition of which often includes :

  • Top-rated credit scores, typically 740 or higher
  • Verifiable income using two year’s of tax returns 
  • Home equity of at least 25%

Borrowers not meeting the above criteria should expect slightly higher mortgage rates and/or discount points. In some cases, such as when an applicant’s credit score is below 680, mortgage rates may be higher by as much as 0.500%.

Although mortgage rates are up this week, though, the impact on home affordability is muted. Mortgage payments rose just $3 per month per $100,000 borrowed this week as compared to last week. 3.55% remains the third-lowest Freddie Mac rate of all-time.

Mortgage rates remain unpredictable and there’s no guarantee for low rates to last forever — much less through August. If today’s mortgage rates meet your needs, therefore, consider locking something in.

Mortgage Rates Down 1 Percent In One Year

Posted on by

Freddie Mac Mortgage Rates

Another week, another new low for mortgage rates. 

According to Freddie Mac’s weekly Primary Mortgage Market Survey, the 30-year fixed rate mortgage rate fell 3 basis points to 3.53% last week nationwide. The 3.53% mortgage rate is available to mortgage applicants who are willing to pay 0.7 discount points, on average, plus a full set of closing costs.

One year ago, the 30-year fixed rate mortgage rate was 4.52%. Today, it’s nearly one percent lower. For every $100,000 borrowed at today’s rates as compared to July 2011, a mortgage applicant will save $57 per $100,000 borrowed, or $684 per year.

Over 30 years of a loan, those savings add up.

30-year fixed rate mortgage rates have now dropped through 5 consecutive weeks, and in 11 of the last 12 weeks, a streak dating back to late-April. Depending where you live, however, you may not get access to 3.53% mortgage rates. As Freddie Mac’s survey reveals, mortgage rates vary by region.

Last week, mortgage rates by region were listed as follows :

  • Northeast Region : 3.56% with 0.7 discount points 
  • West Region : 3.49% with 0.7 discount points
  • Southeast Region : 3.58% with 0.7 discount points
  • North Central Region : 3.52% with 0.7 discount points
  • Southwest Region : 3.56% with 0.7 discount points

Homeowners and home buyers in California, Oregon and Washington, therefore, received the lowest rates in the country, on average. Owners and buyers in Florida and Georgia, by contrast, received the highest rates.

This week, though, mortgage rates are lower everywhere.

With Spain at risk for a sovereign default and China warning of slow growth, mortgage rates began the week by falling yet again. If you’re eligible to refinance, therefore, the timing may be right to lock a mortgage rate. Similarly, if you’re an active home buyer in Phoenixville , today’s low rates will bolster your maximum purchasing power.

Talk to your loan officer about capitalizing on the lowest rates of all-time. Rates throughout Pennsylvania may not rise beginning next week, but when they do rise, they’ll likely rise quickly.

What’s Ahead For Mortgage Rates This Week : July 23, 2012

Posted on by

Freddie Mac mortgage ratesMortgage markets improved last week on expectations for new Federal Reserve stimulus, plus ongoing concerns about the European Union’s future.

Mortgage-backed bonds climbed to new all-time highs, which helped conforming mortgage rates drop to new all-time lows.

The average 30-year fixed-rate mortgage rate is now 3.53% nationwide, according to government mortgage-backer Freddie Mac’s weekly mortgage rate survey. The 3.53% rate is available to mortgage applicants willing to pay 0.7 discount points plus a full set of closing costs where 1 discount point is equal to 1 percent of your loan size.

The 15-year fixed-rate mortgage rate dropped last week, too, falling to 2.83% nationwide, on average.

Even as mortgage rates in Phoenixville drop, however, rate shoppers should be wary of a potential rate reversal. This is because July’s rapid drop in mortgage rates, mostly, has been fueled by market speculation.

First, with employment data lagging, inflation pressures low, and slower-than-expected economic growth, Wall Street now believes that the Federal Reserve will launch its third round of quantitative easing next week, a move that would likely include large-scale mortgage bond purchases.

New, Fed-led demand for mortgage bonds would lead mortgage rates lower for homeowners and rate shoppers throughout Pennsylvania.

And, second, investors are preparing for a potential sovereign debt default in Spain, the Eurozone’s fourth largest economy. The Greek economy, by contrast, which faces similar struggles, is 5 times smaller than Spain’s. A Spain default, too, would likely lead U.S. mortgage rates lower.

That said, if neither event comes to pass — if the Fed passes no new stimulus and Spain receives an ample-sized bailout — mortgage rates would be expected to rise as Wall Street re-adjusts its expectations for the future.

The change would happen quickly, too.

This week, markets will continue to take their cues from the Fed and the Eurozone, but with an eye toward U.S. housing data. The housing market is linked to economic growth so strong results may lead mortgage rates higher.

The June New Home Sales report is released Wednesday; the June Pending Home Sales Index is released Thursday.

Revisiting Housing Market Predictions For 2012

Posted on by

Revisiting predictions for 2012When the calendar flips to a new year, analysts and economists like to make predictions for the year ahead.

So, today, with the year half-complete, it’s an opportune time to check back to see how the experts’ predictions are faring (so far).

If you’ll remember, when 2011 closed, the housing market was showing its first signs of a reboot. Home sales were strong, home supplies were nearing bull market levels, and buyer activity was strong.

Homebuilder confidence was at its highest point in 2 years and single-family housing starts had made its biggest one-month gain since 2009. 

In addition, 30-year fixed rate mortgage rates had just broke below the 4 percent barrier and looked poised to stay there.

There was a lot about which to be optimistic in January 2012.

Yet, there were obstacles for the economy. The Eurozone’s sovereign debt issues remained in limbo, oil prices were spiking, and the Unemployment Rate remained high — three credible threats to growth.

At the time, analyst predictions for the economy occupied both ends of the spectrum, and everywhere in between.

Freddie Mac said home prices would rise in 2012, for example, whereas analysts at CBS News said they’d fall. Both made good arguments.

As another example, American Banker said mortgage rates would rise in 2012. The LA Times, however, said just the opposite. And, the problem with these predictions is that each party can make such a sound defense of their respective positions that it’s easy to forget that a prediction is really just an opinion.

Nobody can know what the future holds.

A lot has changed since those predictions were made :

  • Job growth slowed sharply after a strong Q1 2012 
  • Oil costs dropped rapidly beginning in early-May
  • Spain and Italy have joined Greece as potential sovereign debt trouble-zones

Now, none of this was known — or expected — at the start of the year yet each has made a material change in the direction of both the housing and mortgage markets.

Today, home prices remain low and 30-year fixed rate mortgage rates now average 3.56% nationwide. Home affordability is higher than it’s been at any time in recorded history and, at least for now, low downpayment mortgage products remain readily available.

The experts never saw it coming.

6 months from now, the markets may be different. We can’t know for sure. All we can know is that today is great time to be a home buyer in King of Prussia. Home prices and mortgage rates are favorable.