Posted July 24, 2014Tweet
Mortgage rates idled again last week, marking another week of unexpectedly low rates nationwide
Conforming 30-year mortgage rates were unchanged last week at 4.13%, on average. The average 15-year mortgage rate climbed 0.03 percentage points to 3.26%.
At today's low rates, millions of U.S. homeowners are potentially eligible for a refinance. Current mortgage rates are near a 14-month low, and below their year-ago levels. It's a terrific time to comparison shop 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, along with 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.
HARP mortgages from Fannie Mae and Freddie Mac are not considered "prime", nor are VA loans or FHA loans which are backed by the Department of Veterans Affairs and the Federal Housing Administration, respectively.
Freddie Mac's weekly survey shows the average 30-year fixed rate mortgage rate at 4.13%. In order to get Freddie Mac's 4.14% mortgage rate, borrowers should expect to pay 0.6 discount points, on average.
Paying 0.6 discount points will add $600 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 can be made at the maximum $625,500 loan size, would carry a one-time cost of $3,750.
The 15-year fixed rate mortgage rate worsened last week, rising 3 basis points. The 15-year loan can be locked at 3.26% for borrowers willing to pay 0.6 discount points at closing.
Many lenders now quote 30-year rates in the 3s.
Mortgage rates were unchanged last week, and remain uneven between U.S. regions. Depending on the state in which your home is located, you can expect your quote to be higher or lower than the national average.
The cheapest "rate-and-fee" combinations are being offered to mortgage applicants in the North Central Region, which includes Illinois, Ohio. Indiana, Michigan, Wisconsin, Minnesota, Iowa, North Dakota and South Dakota.
Mortgage rates in the West Region are similar, averaging 4.10% with an accompanying 0.7 discount points. The West Region states are California, Arizona, Nevada, Oregon, Washington, Utah, Idaho, Montana, Hawaii, Alaska, and Guam.
By contrast, the most "expensive" mortgages are going to applicants the Southeast Region, an area which includes Florida, Louisiana, and Georgia, among others.
By region, Freddie Mac reports :
Note that discount points are tax-deductible at times; and that discount points are optional. If you prefer your loan with "no points", tell your lender. Many banks make no-point rates available to buyers and refinancing households.
Freddie Mac shows the average 30-year fixed rate conventional mortgage rate at 4.13% this week. If you missed your chance to refinance earlier this year, or have a high interest rate on your current home loan, today is a good day to consider lower rates.
The typical refinancing household saves more than 28%, according to Freddie Mac. See how much you can save, too. Instant mortgage rate quotes are available at no cost, with no social security number required to get started, and with no obligation to proceed.
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.
Felicia M. Law Enforcement
The Mortgage Reports has been a valuable asset to me. I love that each topic is fully explained in terms that can be easily understood. I've learned more from this web site than from any first-time buyer education class.
Michael J. Network Engineer
The Mortgage Reports is one of the most accurate, detailed, and informative sources of mortgage-related information on the internet.
I enjoy reading The Mortgage Reports. The articles are informative with lots of good stats and trends.
2014 Conforming & FHA Loan Limits
Mortgage loan limits for every U.S. county,
as published by Fannie Mae & Freddie Mac, and the FHA.