Mortgage Rate Update

For the week of June 15th-22nd

Conventional Loan Programs

Government Loan Programs

Mortgage rates, after a small increase last week, remained steady and continue to hold near 2017 lows this week. The majority, eight out of the ten programs offered, remained at the same rate and APR as last week. The other two programs that changed in rate decreased by 11.8 basis points for the 30-year fixed FHA program and 12.5 basis points for the 30-year fixed conventional manufactured program. The average change among all ten programs which includes, both the programs that remained the  same in APR and the programs that decreased, was an insignificant decline of only 2.43 basis points.

 

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

The Freddie Mac mortgage rate remained close to the same this week as the prior week. After a small 2 basis point increase last week, the Freddie Mac Survey 30-year fixed rate mortgage decreased back down by 1 basis point to an APR of 3.90%, only 1 basis point above 2017 low of 3.89%. APR still remains higher than it was a year ago when it was at a level of 3.56% APR.

Attributed to Sean Becketti, chief economist, Freddie Mac.

“Following last week’s sharp decline, the 10-year Treasury yield rose 3 basis points this week. The 30-year mortgage rate remained relatively flat, falling 1 basis point to 3.90 percent. Mortgage rates are continuing to hold at year-to-date lows amidst ongoing economic uncertainty.”

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.

Now is the perfect time to contact the Mortgage Experts for your home purchase or refinance! With our 21-Day Processing method, you can make a stronger purchase offer, reduce stress, and save money! Give us a call at 805.543.LOAN to discuss your mortgage options and to get a free rate quote.

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