Good news for home buyers and refinancing households -- today's mortgage ratesÂ remain firmly south of 4%.
According to Freddie Mac, conforming 30-year mortgage interest rates roseÂ 5 basis points (0.05%) this week to 3.89%, on average, nationwide. The average 15-year mortgage rate also climbed, moving 3 basisÂ points (0.03%), to 3.09 percent.
Both rates remain near their lows of the year.
Since the start of the year, mortgage rates have been lower on a spate of Â economic uncertainty overseas, plus expectations that the Federal Reserve may not start raising the Fed Funds Rate as early as previously forecast.
For home buyers who have been in the hunt for since the start of last year, falling mortgage rates have increased home purchasing power close to 10%.
If your maximum purchase price used to be $400,000, today it's $424,000.
Furthermore, Black Knight Financial Services estimates that there are 6.5 millionÂ U.S. homeowners potentially eligible for a refinance. Maybe you are one of them.
It's a terrific time to compare today's mortgage rates.
Each week, government-backed Freddie Mac conducts a mortgage rate survey of more thanÂ 100 lenders nationwide. The survey asks banks to replyÂ with their "going" mortgage rate for a prime mortgage borrower.
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.
The Freddie Mac survey applies to home purchases of primary residences only, which means thatÂ HARP loansÂ from Fannie Mae and Freddie Mac are not included in the results.
Rates forÂ VA loansÂ or FHA loans, which are backed by the Department of Veterans Affairs and the Federal Housing Administration, respectively, are also not included. VA mortgage rates and FHA mortgage rates are typicallyÂ lower than conventional ones by 25 basis points (0.25%), at least.
This week's Freddie Mac survey shows the average 30-year fixed rate mortgage rate at 3.89%.
In order to get Freddie Mac's published 3.89% rate for a 30-year loan, or 3.09% for a 15-year loan, banks are requiring borrowers toÂ pay 0.6 discount points,Â on average.
Each full discount point adds $1,000 in closing costs for every $100,000 borrowed such thatÂ home buyer borrowing at the baseline 2015 mortgage loan limit of $417,000 and using a 30-year fixed should expect to pay $2,502Â in discount points at closing.
This is in addition to whatever closing costs would normally accompany the loan.
A home buyer purchasing in a high-cost area such as Orange County, California; or San Francisco, where loan sizes range as high as $625,000, should expect to pay $3,753.
Mortgage rates are low, but they vary by state. Your home's location affects the quote you'll get from a bank.
Today's best statesÂ forÂ low interest rates are on the West Coast.
Mortgage ratesÂ are lowest in Freddie Mac's WestÂ Region, an area comprised ofÂ California, Arizona, Nevada, Oregon, Washington, Utah, Idaho, Montana, Hawaii, Alaska, and Guam.
Rates in the West Region average 3.86% with 0.7 discount points paid at closing.
By contrast, the mortgage rates are highest for applicants in the Southeast Region, an area which includes North Carolina, South Carolina, Tennessee, Kentucky, Georgia, Alabama, Florida, Mississippi, Puerto Rico, and the Virgin Islands.
Rates in the Southwest Region average 3.93% with 0.6 discount points required.
The difference in regional ratesÂ means that a home buyer in SeattleÂ will save $22 per month on a $300,000 mortgage as compared toÂ a buyer in Nashville, Tennessee; butÂ will pay $300 more in closing costs, on average.
By region, Freddie Mac reports the following rate-and-fee combinations :
The good news for all mortgage borrowers is that discount points are tax-deductibleÂ in many situations, which reduces their effect on your bottom line.
Points areÂ optional, too, so if you prefer a loan with "no points", just be sure ask your lender. MostÂ banks make no-point rates available to borrowers, and some will offer mortgages with no closing costs whatsoever.
Mortgage rates are low. Be sure to get a quote.
The 30-year fixed rate conventional mortgage rate now averages 3.89%. If you missed your chance to refinance earlier this year; or, if you currently pay mortgage insurance on an FHA or conventional loan, it's a good day to talk to a lender.
Take a look at today's real mortgage rates now. Your social security number is not required to get started, and all quotes come with instant access to your live credit scores.
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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2016 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)