FHA mortgage rates and VA mortgage rates dropped, too. Many U.S. lenders now quote rates in the 3s. It's a mortgage-market turnaround few analysts expected. U.S. home buyers and refinancing households are taking advantage.
Shopping for a today's mortgage rates? You're going to like the rates you see.
Freddie Mac's Primary Mortgage Market Survey (PMMS) shows the average conforming 30-year mortgage rate slipping 0.06 percentage points to 4.14% nationwide; and the average conforming 15-year fixed rate mortgage rate down 0.04 percentage points to reach 3.25%.
In order to lock the 30-year mortgage rate or the 15-year mortgage rate, mortgage borrowers should expect 0.6 discount points and 0.5 discount points, respectively, to be charged at closing, along with a full set of mortgage closing costs.
Discount points are a one-time mortgage cost, paid as cash or added to your loan balance. They're considered "prepaid mortgage interest", can be tax-deductible, and give borrowers access to below-par mortgage rates.
The cost of a discount point is equal to one percent of your first mortgage loan size.
A borrower in Miami, Florida, therefore, borrowing at the 2014 conforming loan limit of $417,000, can expect one discount point to cost $4,170. A borrower in Orange County borrowing at the local limit of $625,500 should expect to pay $6,250.
Discount points are optional. Borrowers choosing to "waive" discount points can expect to receive higher rates from their bank.
Depending on loan size, a loan with no points may run one-eighth of a percentage point higher. A loan with no points and no closing costs may run one-quarter of a percentage point higher.
Mortgage rates are available in the 3s, too.
Mortgage rates sank last week for the fourth week-in-a-row, and sixth week out of seven. Rates haven't been this low since October 2013 and it's a shift which has surprised most of Wall Street's analysts.
At the start of the year, 30-year mortgage rates had reached a two-year high, touching 4.58% nationwide. The Federal Reserve was beginning the "taper" of its rate-suppressing QE3 stimulus program and investors feared the worst.
Mortgage rates had made their fastest 2-month climb in more than 30 years. In the time since, however, rates have been in decline.
The U.S. economy limped through the winter months, affecting both domestic output and spending; and demand in the housing market softened. Furthermore, global political tension has boosted safe-haven buying, driving prices higher for mortgage-backed securities (MBS).
Foreign investors are entering the U.S. market faster than the Federal Reserve can exit it; and that's helping to keep mortgage rates low.
30-year fixed rate mortgage rates have crossed below 4.00% in many U.S. markets. Refinance opportunities have re-opened for the FHA Streamline Refinance and VA Streamline Refinance (IRRRL), as well as for the FHFA-backed HARP program.
Plus, the availability of low- and no-downpayment mortgages is still high.
The FHA offers a 3.5% downpayment program open to all U.S. home buyers and qualified buyers can get access to the USDA No Money Down program with low mortgage insurance premiums.
Mortgage rates may cut lower through June but, then again, maybe they won't. This could be the lowest point for mortgage rates in all of 2014. It's a good day to compare today's live mortgage rates.
It's tough to forecast this week's mortgage rates because this is a holiday-shortened week; and a lot of news will affect U.S. rates. There are multiple economic reports scheduled for release, and multiple Federal Reserve speakers slated to appear publicly.
Astute rate shoppers will be aware of upcoming events, which include :
In addition to the events above, there are multiple U.S. Treasury auctions slated for this week which may affect mortgage rates. Wednesday, the Treasury will auction 5-year notes and, Thursday, it will auction 7-year notes.
U.S. Treasury note rates don't affect mortgage rates but when demand for treasuries are high, it signals demand for U.S.-backed debt, in general, which includes mortgage-backed securities.
Strong auction results are typically good for U.S. mortgage rates.
Mortgage rates dropped last week, and may drop again today. It will be prudent to comparison shop or consider a refinance of your existing home loan because lenders may be lowering rates daily.
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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)