Mortgage Rate Update

For the week of December 7th- December 14th

Conventional Loan Programs

Government Loan Programs

The majority of the ten programs offered remained the same in rate as last week with all of the conventional programs not changing in rate or APR from the week prior. The majority of government programs on the other hand, all increased with the exception of the 30-year FHA Manufactured Loan program which remained at  the same level it was at last week. The average change among the other four government programs was a combined 48.8 points, or an average increase of 12.2 points among those four government programs.

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 1 basis points this week to a level of 3.93%. This APR is lower than it  was a year ago when it was at a higher level of 4.16%, this is 23 basis points higher than the current APR of 3.93%. Mortgage rates continue to remain low.
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Attributed to Len Kiefer, Deputy Chief Economist.
“As widely expected, the Fed increased the federal funds target rate this week for the third time in 2017. The market had already priced in the rate hike so long term interest rates, including mortgage rates hardly moved. Mortgage rates held relatively flat across the board, with the 30-year fixed mortgage rate inching down 1 basis point to 3.93 percent in this week’s survey. Mortgage rates have been in a holding pattern for the fourth quarter, remaining within a 10 basis point range since October.”

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