Mortgage Rate Update
For the week of February 16- February 23rd
Conventional Loan Programs
Government Loan Programs
Government Loan Programs
Mortgage rates this week increased in four of the five conventional programs offered and decreased in the majority of the government programs offered; with rates staying the same for 2 out of the five government programs and decreasing in the other three government programs. The conventional programs’ rates increased by an average of 1.2 basis points over all five programs offered; this average including the 0.5 basis point decrease seen in the 30-year fixed jumbo program, the only conventional loan program with a rate that decreased this week. The government loan programs tell a different story, three out of five of the programs decreased in rate while the other two programs’ rates stayed the same as they were last week. The overall increase of government programs was an average increase of 1.5 basis points, this average is over all five programs and includes the two government loan programs that stayed the same in rate.
Take a look at the Freddie Mac Survey of the 30-year fixed rate movement over the past year:
The Freddie Mac mortgage rate increased changing only by one basis point to an APR of 4.16%, this is above the APR a year ago when it was at a level of 3.62%.
“In a short week following Presidents Day, the 10-year Treasury yield fell about 8 basis points. However, the 30-year mortgage rate rose 1 basis point to 4.16 percent. This week’s survey once again displays the disconnect between mortgage rates and Treasury yields, a result of continued uncertainty.”
Here is the Freddie Mac Survey of the 30-year fixed historical average rate movement over the past 30 years:
APR rates for the year of 2016 were at historically low levels , with an APR of 3.65% for a 30-year fixed rate mortgage, they were at the lowest we’ve ever seen them. 2012 was the previous low with an APR of 3.66%, only one basis point higher than what we saw in 2016. APR rates dropped 20 points from 3.85% in 2015 to the low of 3.65% in 2016. The highest APR rates were in the early 1980’s when they reached an ultimate high of 16.63% in 1981, almost 5 times more than the APR rates in 2016. Since 2012 rates have remained somewhat flat and comparatively low changing minimally.
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- Mortgage rates assume purchase of a single-family, detached, owner-occupied, residential property.
- Mortgage rates assume borrower credit score of 760 and a Debt-to-Income ratio of 35%. Rates for conventional loan programs assume a loan-to-value of 60%.
- Loan amount is $417,000 for all programs (appraised value of $522,000), except for the high balance ($561,200 loan and $722,000 value), and Jumbo ($700,000 loan and $1,000,000 value)
- Mortgage rates and APR subject to change
- 30-year fixed, 15-year fixed, 30-year high balance, Manufactured, Jumbo
- FHA, FHA 203k, Manufactured, USDA, VA