Mortgage rates dropped big last week, according to Freddie Mac's weekly Primary Mortgage Market Survey (PMMS). The average conforming 30-year fixed rate mortgage rate fell 0.15 percentage points last week to 4.13%, on average, marking the second-biggest one-week improvement to mortgage rates since June 2009.
The 30-year fixed is at a 19-week low. Have you seen today's rates?
Each week, government-backed Freddie Mac conducts a mortgage rate survey of 125 banks nationwide. The survey asks banks reply with their "going" mortgage rate for a prime mortgage borrower, including the number of accompanying discount points required to lock that rate.
A prime borrower, as defined by Freddie Mac, is one with ample home equity or downpayment, high credit scores, and documented income which meets or exceeds mortgage underwriting standards.
Freddie Mac's weekly survey shows the average 30-year fixed rate mortgage rate at 4.13%. This is the lowest that mortgage rates have been since mid-June.
In order to get Freddie Mac's 4.13% mortgage rate, borrowers should expect to pay 0.8 discount points, on average.
Paying 0.8 discount points will add $800 in closing costs for every $100,000 borrowed. Loans in high-cost areas, therefore, a classification which includes Loudoun County, Virginia; Potomac, Maryland; and Orange County, California, which are made at the maximum $625,500 loan size, would carry a one-time cost of $5,004.
The 15-year fixed rate mortgage rate also improved last week, shedding 0.09 basis points to move to 3.24% for borrowers willing to pay 0.6 discount points at closing. This, too, is a 19-week best.
Mortgage rates made big gains last week, but they fell unevenly from region-to-region. Depending on the state in which your home is located, you'll likely see different mortgage rates from your lender.
The cheapest "rate-and-fee" combinations are being offered to mortgage applicants in the West Region, which includes California, Oregon, Washington, Nevada and Arizona.
Mortgage rates in the West Region average 4.08% with an accompanying 0.8 discount points.
By contrast, the most "expensive" mortgages are going to applicants the Southwest Region, an area which includes New Mexico and Oklahoma; and the Southeast Region which includes Florida and Georgia.
By region, Freddie Mac reports :
Note that discount points are tax-deductible for some home buyers and refinancing households; and that discount points are optional. Mortgage applicants can choose to pay zero discount points in exchange for a slightly higher mortgage rate.
Freddie Mac shows the average 30-year fixed rate conventional mortgage rate at 4.13% this week. This is the lowest since June. If you missed your chance to refinance earlier this year, or bought a home and locked a high rate, today is a chance to undo that mistake.
Today's mortgage rates look terrific and are ready to be locked. See how low your new mortgage rate can be. Mortgage rates are available online with no cost and no obligation whatsoever.
The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.
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2015 Conforming, FHA, & VA Loan Limits
Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)