30-Year Fixed-Rate Mortgage Rates Climb For The First Time In 2014; 15-Year Stays Unchanged
Mortgage rates rose last week, according to Freddie Mac's weekly Primary Mortgage Market Survey (PMMS).
Conforming 30-year fixed rate mortgage rates climbed 0.05 percentage points last week to reach 4.28%, on average, nationwide. The survey results mark the first time this year that mortgage rates recorded a week-to-week increase.
Mortgage rates still remain near 3-month lows.
30-Year Fixed Rate Mortgage Rate : 4.28%
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 4.28%. Aside from last week, this is the lowest that mortgage rates have been since Thanksgiving.
In order to get Freddie Mac's 4.28% mortgage rate, borrowers should expect to pay 0.7 discount points, on average.
Paying 0.7 discount points will add $700 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 $4,379.
The 15-year fixed rate mortgage rate made no change last week, resting at 3.33% for borrowers willing to pay 0.7 discount points at closing. This, too, is near a 3-month best.
Where Are Mortgage Rates Lowest? California.
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 4.25% with an accompanying 0.7 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 :
- Northeast Region : 4.27% with 0.8 discount points
- West Region : 4.25% with 0.7 discount points
- Southeast Region : 4.30% with 0.5 discount points
- North Central Region : 4.29% with 0.7 discount points
- Southwest Region : 4.32% with 0.6 discount points
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.
A Good Day To Lock Your Mortgage Rate
Freddie Mac shows the average 30-year fixed rate conventional mortgage rate at 4.28% this week. This is the second-lowest reported rate since the end of November. If you missed your chance to refinance earlier this year, or bought a home and locked a high rate, today provides a chance to undo that mistake.
Today's rates 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.