Mortgage Rate Update

For the week of August 10th-17th

Conventional Loan Programs

Government Loan Programs

Mortgage rates remained flat yet again this week, again with 7 out of the 10 programs offered continuing to remain at last week’s rates. The programs who’s APR did change were all conventional programs and they all decreased in rate; there were no increases to any of the ten programs’ APR. All five of the government programs offered remaining the same in APR as last week. The average change among all ten programs’ taking into account those programs’ who’s APR had a zero percent change was a small decrease of 1.5 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 decreased this week to an APR of 3.89%, decreasing in APR by 1 basis point. APR still remains higher than it was a year ago when it was at a level of 3.43% this time one year ago.

Attributed to Sean Becketti, chief economist, Freddie Mac.

“Following a mild decline last week, the 10-year Treasury yield rose 1 basis point this week. The 30-year mortgage rate similarly remained relatively flat, falling just 1 basis point to 3.89 percent. Mortgage rates are continuing to hold at low levels 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