Mortgage Rate Update

For the week of April 20th-27th

Conventional Loan Programs

Government Loan Programs

After five consecutive weeks of rates dropping, they have finally began to increase again; with all the programs increasing in rate and APR with the exception of the 30-year fixed jumbo loan program that decreased by 12 basis points and the 30 and 15-yeart fixed conventional programs who’s rates remained the same as last week. The overall change to APR was an increase of 14.1basis points. The largest change can be seen in the 30-year fixed FHA program which increased by a substantial; 57.9 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 increased for the first time in five weeks. It increased by 6 basis point to an APR of 4.03%. APR still remains higher than the APR a year ago when it was at a level of 3.66% APR.

Attributed to Sean Becketti, chief economist, Freddie Mac.

“The 10-year Treasury yield rose about 10 basis points this week. The 30-year mortgage rate moved with Treasury yields, rising 6 basis points to 4.03 percent. Despite recent swings in mortgage rates, the housing market continues to show signs of strength — both existing and new home sales in March exceeded expectations, and the Case-Shiller Home Price Index posted another solid gain.”

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