Mortgage Rate Update

For the week of October 5th- October 12th

Conventional Loan Programs

Government Loan Programs

Six of the ten programs offered,combining both government and conventional programs, stayed the same in rate as last week. The other four programs increased in rate for a total of a 39.8 cumulative basis point increase among the four programs. This is equal to an overall rise in APR of about 4 basis points when divided among all ten programs equally. The conventional manufactured program increased in rate for the second consecutive week to an APR of 4.165%, this is the highest rate the APR for this program has been at since the beginning of August. The jumbo program increased in APR by 3 basis points after remaining flat for the past 3 weeks. The 30-year FHA program increased by 11.7 basis points following a decrease of 11.7 basis points, regressing back to the rate of 4.767%, a level it had been at almost the whole month of September, the month prior. Rates have been cumulatively increasing, but at a slow rate, as most programs stay near the rate they were at in September and even August the two months prior.

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 6basis points this week to a level of 3.91%. APR still remains higher than it  was a year ago when it was at a level of 3.47%, this is 44 basis points lower than the current APR of 3.91%.

Attributed to Sean Becketti, chief economist, Freddie Mac.

“The 30-year mortgage rate increased for a second consecutive week, jumping 6 basis points to 3.91 percent. The 10-year Treasury yield also rose, climbing 4 basis points this week.”

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