By Dan Green | Reposted from themortgagereports.com
Despite day-to-day volatility, the broader mortgage market has been in a 3-week standstill, as 30-year fixed-rate mortgage rates went unchanged again this week according to data from Freddie Mac.
The average 30-year fixed rate mortgage remained at 3.53%; the average 15-year fixed held at 2.77%.
The mortgage refinance boom continues.
30-Year Fixed Rate : 3.53 percent
Freddie Mac’s analysis of more than 125 banks showed that the average 30-year fixed-rate mortgage rate went unchanged this week, posting at 3.53 percent.
Home buyers and refinancing households wanting to lock this low rate should expect to pay, on average, 0.8 discount points to their lender plus a complete set of closing costs.
The 0.8 discount points is a one-time, closing cost equal to 0.8% of the loan size and paid at settlement.
A mortgage applicant borrowing at the local mortgage loan limit of $625,500 in New York City, for example; or Orange County, California; or Loudoun County, Virginia should expect to pay $5,004 in discount points, therefore, for access to the 3.53% rate.
The Freddie Mac also showed the average 15-year fixed-rate mortgage rate registering 2.77% nationwide, on average, with an accompanying 0.8 discount points required plus closing costs. As with the 30-year fixed-rate product, mortgage rates were unchanged from last week. However, the number of discount points required for a 15-year fixed rate loan increased by 0.1 discount points.
Applicants who prefer low-closing cost or no-closing cost mortgages may opt for a 30-year or 15-year fixed rate mortgage with zero points, but should expect receive a slightly higher mortgage rate in return.
Typically, loans with zero points are +0.125% from loans with discount points; loans with zero closing costs are often +0.250%.
Mortgage rates stay the same, still positive for homebuyers
Although mortgage rates are worse since the New Year; and the 30-year fixed is predicted to reach 4.4% this year, today’s rates continue to hover near lifetime lows.
If you have not yet refinanced, timing may be ideal. The economy is heating up, home prices are rising, and the Eurozone is slowly regaining confidence. Each of these events are expected to lead mortgage rates higher.
See how much home you can afford, or what a refinance can do for your housing budget.
bc@smarterborrowing.com 617.771.5021
