Mortgage Rates Are Back on the Rise

Mortgage Rates Are Back on the Rise
Freddie Mac | October 26, 2018

Borrowers were faced with rising mortgage rates again this week, after a slight pause from increases the week before.

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“Despite volatility in the stock market, the 30-year fixed-rate mortgage inched forward just 1 basis point to 4.86 percent this week,” says Sam Khater, Freddie Mac’s chief economist. “We expect rates to continue to rise, which will put downward pressure on homebuying activity. While higher borrowing costs will keep some people out of the market, buyers with more flexibility could take advantage of the decreased competition.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 25, 2018:

30-year fixed-rate mortgages: averaged 4.86 percent, with an average 0.5 point, rising slightly from last week’s 4.85 percent average. Last year at this time, 30-year rates averaged 3.94 percent.

15-year fixed-rate mortgages: averaged 4.29 percent, with an average 0.4 point, rising from last week’s 4.26 percent average. A year ago, 15-year rates averaged 3.25 percent.

5-year hybrid adjustable-rate mortgages: averaged 4.14 percent, with an average 0.3 point, climbing from last week’s 4.10 percent average. A year ago, 5-year ARMs averaged 3.21 percent.

Source: Freddie Mac; REALTOR® Mag News 102618

Borrowers Finally See Some Relief With Mortgage Rates

Borrowers Finally See Some Relief With Mortgage Rates
Freddie Mac | October 19, 2018

Following weeks of gradual increases, the 30-year fixed-rate mortgage dipped slightly this week, possibly offering a slight window of opportunity at lower borrowing costs to some would-be buyers.

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“The modest decline in mortgage rates is a welcome respite from the rapid increase in rates the last few weeks,” says Sam Khater, Freddie Mac’s chief economist. “While the housing market has clearly softened in reaction to the rise in mortgage rates, the economy and consumer sentiment remains very robust and that will sustain purchase demand, particularly in affordable markets and neighborhoods.”

Freddie Mac reports the following national averages in mortgage rates for the week ending Oct. 18:

30-year fixed-rate mortgages: averaged 4.85 percent, with an average 0.5 point, dropping from last week’s 4.90 percent average. Last year at this time, 30-year rates averaged 3.88 percent.

15-year fixed-rate mortgages: averaged 4.26 percent, with an average 0.4 point, falling from last week’s 4.29 percent average. A year ago, 15-year rates averaged 3.19 percent.

5-year hybrid adjustable-rate mortgages: averaged 4.10 percent, with an average 0.3 point, rising from last week’s 4.07 percent average. A year ago, 5-year ARMs averaged 3.17 percent.

Source: Freddie Mac; REALTOR® Mag News 101918

Mortgage Rates Jump to 7-Year High

Mortgage Rates Jump to 7-Year High
Freddie Mac | October 12, 2018

The 30-year fixed-rate mortgage hasn’t averaged this high since 2011, as it inches closer to the 5 percent threshold.

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“Rising rates paired with high and escalating home prices is putting downward pressure on purchase demand,” says Sam Khater, Freddie Mac’s chief economist. “While the monthly payment remains affordable due to the still low mortgage rate environment, the primary hurdle for many borrowers today is the down payment and that is the reason home sales have decreased in many high-priced markets.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 11:

30-year fixed-rate mortgages: averaged 4.90 percent, with an average 0.5 point, rising from last week’s 4.71 percent average. Last year at this time, 30-year rates averaged 3.91 percent.

15-year fixed-rate mortgages: averaged 4.29 percent, with an average 0.4 point, rising from last week’s 4.15 percent average. A year ago, 15-year rates averaged 3.21 percent.

5-year hybrid adjustable-rate mortgages: averaged 4.07 percent, with an average 0.3 point, rising from last week’s 4.01 percent average. A year ago, 5-year ARMs averaged 3.16 percent.

Source: Freddie Mac; REALTOR® Mag News

Hike in Mortgage Rates Erases Affordability Relief

Hike in Mortgage Rates Erases Affordability Relief
Freddie Mac | August 3, 2018

Borrowers got stuck with higher mortgage rates again this week. The 30-year fixed-rate mortgage climbed for the second consecutive week, averaging 4.6 percent. Mortgage rates are now at their fourth highest level of the year, Freddie Mac reports.

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“The higher rate environment, coupled with the ongoing lack of affordable inventory, has led to a drag on existing-home sales in the last few months,” says Sam Khater, Freddie Mac’s chief economist.

The Federal Reserve this week voted to hold off on raising its short-term rate, “but the embers of a strong economy potentially stoking higher inflation, borrowing costs will likely modestly rise in the coming months,” Khater adds.

Even with home price growth easing slightly in some markets, Khater notes that mortgage rates hovering near a seven-year high will certainly create affordability challenges for prospective buyers looking to close on a home purchase.

Freddie Mac reports the following national averages with mortgage rates for the week ending Aug. 2:

30-year fixed-rate mortgages: averaged 4.60 percent, with an average 0.4 point, rising from last week’s 4.54 percent average. Last year at this time, 30-year rates averaged 3.93 percent.

15-year fixed-rate mortgages: averaged 4.08 percent, with an average 0.4 point, increasing from last week’s 4.02 percent average. A year ago, 15-year rates averaged 3.18 percent.

5-year hybrid adjustable-rate mortgages: averaged 3.93 percent, with an average 0.2 point, rising from last week’s 3.87 percent average. A year ago, 5-year ARMs averaged 3.15 percent.

Source: Freddie Mac; REALTOR® Magazine 080318

Mortgage Rates Fall to 3-Month Low

Mortgage Rates Fall to 3-Month Low
Freddie Mac | July 6, 2018

Mortgage rates were back down across the board again this week, offering some temporary relief to home buyers. Rates posted a rapid increase throughout most of the spring but have recently reversed course, declining in five of the past six weeks. The 30-year fixed-rate mortgage is now at its lowest average since April.

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“The run-up in mortgage rates earlier this year represented not just a rise in risk-free borrowing costs, but for investors, the mortgage spread also rose back to more normal levels by about 20 basis points,” says Sam Khater, Freddie Mac’s chief economist. “What that means for buyers is good news. Mortgage rates may have a little more room to decline over the very short term.”

Freddie Mac reports the following national averages with mortgage rates for the week ending July 5:

  • 30-year fixed-rate mortgages: averaged 4.52 percent, with an average 0.5 point, dropping from last week’s 4.55 percent average. Last year at this time, 30-year rates averaged 3.96 percent.
  • 15-year fixed-rate mortgages: averaged 3.99 percent, with an average 0.4 point, falling from last week’s 4.04 percent average. A year ago, 15-year rates averaged 3.22 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.74 percent, with an average 0.3 point, falling from last week’s 3.87 percent average. A year ago, 5-year ARMs averaged 3.21 percent.

Source: Freddie Mac; REALTOR® Magazine 070618

Falling Mortgage Rates Offer Affordability Relief

Falling Mortgage Rates Offer Affordability Relief
Freddie Mac | June 29, 2018

Mortgage rates declined this week, marking the fourth drop in the past five weeks, Freddie Mac reports.

“The decrease in borrowing costs is a nice slice of relief for prospective buyers looking to get into the market this summer,” says Sam Khater, Freddie Mac’s chief economist. “Some are undoubtedly feeling the affordability hit from swift price appreciation and mortgage rates that are still 67 basis points higher than this week a year ago.”

Overall, Khater says the economy and the housing market are on “solid footing” this summer, which should support continued strength in housing demand. “Home price growth is still high, but is expected to moderate, and while sales activity has slowed, it’s primarily because of stubbornly low supply,” Khater says.

Freddie Mac reports the following national averages with mortgage rates for the week ending June 28:

  • 30-year fixed-rate mortgages: averaged 4.55 percent, with an average 0.5 point, falling from last week’s 4.57 percent average. Last year at this time, 30-year rates averaged 3.88 percent.
  • 15-year fixed-rate mortgages: averaged 4.04 percent, with an average 0.5 point, which is unchanged from a week ago. Last year at this time, 15-year rates averaged 3.17 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.87 percent, with an average 0.3 point, rising from last week’s 3.83 percent average. A year ago, 5-year ARMs averaged 3.17 percent.

Source: Freddie Mac; REALTOR® Magazine 062918