Mortgage Rate Update

For the week of March 16th -23rd

Conventional Loan Programs

Government Loan Programs

Mortgage rates this week dropped after two consecutive weeks of upward movement.  The average change among all ten programs tracked was a substantial decrease of 15.5 basis points. This almost offsets the 16.8 basis point increase that occurred last week. The increases seen in the 30-year fixed FHA and 30-year fixed FHA 203K programs totaled 6.5 basis points slightly throwing off the average decrease this week. The largest change that can be seen in any of the ten programs tracked by this report, was in the 30-year fixed high balance which decreased a sizable 26.6 basis point drop.

Take a look at the Freddie Mac Survey of the 30-year fixed rate movement over the past year:

The Freddie Mac mortgage rate decreased by 7 basis point to an APR of 4.23%, this is above the APR a year ago when it was at a level of 3.71% APR.

Attributed to Sean Becketti, chief economist, Freddie Mac.

“The 10-year Treasury yield fell about 10 basis points this week. The 30-year mortgage rate moved with Treasury yields and dropped 7 basis points to 4.23 percent. This marks the greatest week-over-week decline for the 30-year mortgage rate in over two months, a stark contrast from last week’s jump following the FOMC announcement.”

Here is the Freddie Mac Survey of the 30-year fixed historical average rate movement over the past 30 years:2016 historic freddie mac survey

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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Calculation Notes

  • 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