24Jan2013
Dan Green
Author
Dan Green
Filed Under
Mortgage Rates

30-Year Fixed Rate Mortgage Rate Rises To 3.42%

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Freddie Mac 30-year fixed rate mortgage rate rises to 3.42%Mortgage rates rose again this past week, moving to a 4-month high.

According to Freddie Mac's weekly Primary Mortgage Market Survey (PMMS), the average 30-year fixed rate mortgage rate nationwide is now 3.42% for borrowers willing to pay 0.7 discount points at the time of closing.

For loans with zero points, mortgage rates are closer to 3.75%.

Rates have climbed this year, and appear poised to move higher.

Click here to get today's mortgage rates.

30-Year Fixed Rate To 3.42%

Freddie Mac's weekly mortgage rate data is compiled from survey data sent to 125 banks nationwide.

The rate is meant to represent the typical mortgage pricing available to a prime mortgage borrower, where a "prime" mortgage borrower is one with 20% equity; credit scores of 740 of better; verifiable income and assets; and a debt-to-income ratio of 45 percent or better.

The survey is for conforming loans only, which includes HARP 2 mortgages. Loans via the FHA Streamline Refinance program and the VA Streamline Refinance are specifically separate.

This week, Freddie Mac's "prime" mortgage rate is 3.42% -- up 0.04 percentage points from the week prior. To lock the rate, though, requires an accompanying 0.7 discount points to be paid at the time of closing, where 1 discount point is equal to 1 percent of the loan size.

Therefore, for an Alexandria, Virginia home buyer to get access to Freddie Mac's 3.42 percent 30-year fixed rate mortgage rate, a one-time fee of 0.7% would be levied at the time of closing. Against a loan size at the local jumbo loan limit of $625,000, that's an additional loan fee of $4,378.

Loans with zero points, and loans with zero closing costs, are priced higher. This week's zero-point mortgage rate is nearer to 3.75 percent; and, the zero-closing cost rate is nearer to 4.00 percent, assuming a certain loan size.

Click here to get today's mortgage rates.

Illinois Homeowners Getting Lowest Rates, Nationwide

Freddie Mac's 125 surveyed banks are split by region and, like all else in real estate, mortgage pricing is a local phenomenon. Where you live in the United States can determine your final, quoted mortgage rate.

For example, this week, mortgage applicants in the North Central Region -- an area which includes Chicago, Illinois; Milwaukee, Wisconsin; and Indianapolis, Indiana -- received the lowest mortgage rates, on average, whereas applicants in the Southwest Region received the highest.

By region, Freddie Mac reports mortgage rates as follows :

  • Northeast : 3.45% with 0.6 discount points
  • Southeast : 3.43% with 0.7 discount points
  • North Central : 3.38% with 0.7 discount points
  • Southwest : 3.44% with 0.7 discount points
  • West : 3.40% with 0.7 discount points

Mortgage rate discrepancies between regions are the result different local pricing customs; and varying prepayment risks. Rate are valid for single-unit, detached homes only.

The 15-year fixed rate mortgage rate averaged 2.71 percent last week, up 0.05 percentage points from the week prior.

See Mortgage Rates In Your Region

Although mortgage rates have moved higher this year, they remain extremely low as compared to historical standards. Conditions like this won't likely last and, already, the Mortgage Bankers Association predicts that rates will reach 4.4% by year's end.

So far, rates have stayed low.

Whether you've refinanced lately or not, take a minute to get today's mortgage rates for your home region. It may surprise  you what turns up. Get a rate quickly and easily -- click here to get today's mortgage rates.

About the Author

Dan Green is a mortgage market expert, providing over 10 years of direct-to-consumer advice. NMLS #1019791. You can also connect with Dan on Twitter and on Google+.

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