Mortgage rates just hit their 2017 low.
Freddie Mac, in its weekly survey of more than 100 lenders nationwide, reported the average thirty-year rate fell 7 basis point (0.07%) to 3.95% this week.
Mortgage rates are down more than one-quarter of a percentage point since the start of the year, and buyers are happy about it.
At 2017's dawn, analysts predicted rates as high as 4.3% mid-year. Well, it's nearly June and rates went the other way.
It's a new opportunity for home refinance candidates and home buyers to lock in. With an upcoming Federal Reserve meeting in June, there's no predicting what might happen.
Shopping for a home loan? Today could be your day to take action.Click to see today's rates (Jul 20th, 2017)
Each week, mortgage agency Freddie Mac surveys 125 lenders nationwide for its Primary Mortgage Market Survey (PMMS), a snapshot of current mortgage interest rates.
It asks mortgage companies, banks, and credit unions, and other lenders their current rate for a well-qualified borrower putting 20% down, and paying "discount points," or extra fees that directly reduce the rate.
The weekly Freddie Mac report is great for watching mortgage rate trends. The organization has been conducting the survey for 45 years. So, the weekly average rate is a good measure of historical movement.
But as a mortgage rate consumer who needs a truly current rate, Freddie Mac's survey isn't very useful. The agency polls lenders early in the week for its Thursday release. By publish time, their rate is already outdated.
Mortgage rates change by the minute.
Plus, Freddie's rates are based on the quote for a mythical homeowner: one with great credit, 20% down, and a short closing time frame.
Your rate might be higher or lower. The only way to know is to contact a reputable lender and request a rate quote.Click to see today's rates (Jul 20th, 2017)
Nearly half-way through the year, mortgage rates are faring quite well.
Rates are now hovering below 4%, despite industry experts and analysts calling for rates near 4.5% by now.
It's actually a shock that rates aren't higher. Dire 2017 predictions ensued in January, after the 17th worst week for rates in history. It appeared the newly minted Trump Administration would roll out economy-boosting reforms like lower taxes and a $1 trillion infrastructure spending plan.
These plans might be good for the economy, but they're also inflationary, and that's bad for mortgage rates.
There were high hopes for quick roll-out, but it seems everybody forgot that there's this thing called Congress.
Plans on which the candidate campaigned suddenly became very high mountains to scale.
The market is now bringing expectations in line with reality. Even if Trump pushes through reforms, it could take many more months or even years. And, by then, the plans would undoubtedly be watered down by the House and Senate. (We're seeing that play out with the American Health Care Act, or AHCA a.k.a. Trumpcare).
Add near-daily Trump controversies into the mix, and mortgage rates are doing quite well.
So, will we see mortgage rates in the high 4s and low 5s in 2017 as many predicted? Probably not, the way things are going.
That's good news for the home buyer. Many renters feared they would be priced out of the market -- not so much by rising home prices but by rising rates.
But rates have actually come down by about 0.30% since highs in December. That means a savings of around $35 per month on a $250,000 mortgage.
If you're a mortgage shopper, you have a "second chance" at a low rate in 2017.
Today's interest rates are low. Historically any rate in the 4% range was considered "too good to be true." Rates have averaged more than 8% over the 45 years Freddie Mac has been tracking them.
Get today's live mortgage rates now. Your social security number is not required to get started, and all quotes come with access to your live mortgage credit scores.Click to see today's rates (Jul 20th, 2017)
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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2017 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)