Mortgage Rates Lowest in a Month!

Mortgage Rates Lowest in a Month!

Bajak and Associates

Lowest Mortgage Rates in a Month! Nov. 16, 2018

Mortgage rates hit their lowest levels of THE month yesterday, and the lowest levels in A month today.  It's a bit of a technicality, really.  As of yesterday, there were a few days in mid-to-late October that saw lower rates.  Today's drop means we'd need to go back to early October to see anything lower. 

What's the significance of being at the lowest levels in a month?  None, really.  It's just really fun to be able to say such things in an environment where such things haven't been easily said for quite some time!  Perhaps more relevant and more tangible is the fact that we can say rates are nearly an eighth of a percentage point lower on the week, and that's a decent move regardless of the environment.

Next week brings the Thanksgiving holiday, which tends to make mortgage lenders set rates more conservatively (secondary mortgage market is much less active than normal, starting on Wednesday afternoon).  As such, gains of this size are certainly worth considering from a lock/float standpoint.  In terms of tactical improvements amidst the broader trend toward higher rates, this is about as good as we've seen.


Loan Originator Perspective

Bonds enjoyed a green week, posting gains (minimal or not) all 5 days.  Treasury yields are nearing early October lows, but the improvements aren't fully reflected on my rate sheets yet.  I'll float new applications till Monday, for clients with a modicum of risk tolerance.  -Ted Rood, Senior Originator


Ongoing Lock/Float Considerations 

Rates continue coping with several big-picture headwinds, including: the Fed's rate hike outlook (and general policy tightening), the increased amount of Treasury issuance to pay for the tax bill (higher bond issuance = higher rates), and the possibility that fiscal stimulus results in higher growth/inflation (which certainly seems to be the case so far in 2018).

While rates were able to recover and stay sideways in the summer months, September and October have seen a surge up to the highest levels in more than 7 years. 

Upward pressure can continue as long as economic growth and inflation continue running near long-term highs.  Stay defensive (i.e. generally more lock-biased).  It will take a big change in economic fundamentals or geopolitical risk for the big picture to change.  Such things tend to not happen as quickly as we'd like.

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Source: Matthew Graham, Mortgage News Daily

Mortgage rates dip for Friday June 2, 2017

Mortgage rates dip for Friday

LenderVolt

Friday, June 2, 2017

Multiple benchmark mortgage rates declined today. The average rates on 30-year fixed and 15-year fixed mortgages both dropped. Meanwhile, the average rate on 5/1 adjustable-rate mortgages also dropped.

Mortgage rates change daily, but they remain low by historical standards. If you're in the market for a mortgage, it could make sense to lock if you see a rate you like. Just make sure you've looked around for the best rate first.

Best Time to Buy is TODAY!

30-year fixed mortgages

The average 30-year fixed-mortgage rate is 3.80 percent, down 2 basis points since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 3.93 percent.

At the current average rate, you'll pay principal and interest of $465.96 for every $100,000 you borrow. That's down $1.14 from what it would have been last week.

You can use our mortgage calculators (http://bit.ly/2rBlsAS) to get a handle on what your monthly payments would be and see what the effects of making extra payments would be. It will also help you calculate how much interest you'll pay over the life of the loan.

15-year fixed mortgages

The average 15-year fixed-mortgage rate is 3.02 percent, down 3 basis points from a week ago.

Monthly payments on a 15-year fixed mortgage at that rate will cost around $692 per $100,000 borrowed. The bigger payment may be a little harder to find room for in your monthly budget than a 30-year mortgage payment would, but it comes with some big advantages: You'll save thousands of dollars over the life of the loan in total interest paid and build equity much faster.

5/1 ARMs

The average rate on a 5/1 ARM is 3.17 percent, ticking down 2 basis points since the same time last week.

These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.

Monthly payments on a 5/1 ARM at 3.17 percent would cost about $431 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan's terms.

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   Source: Claes Bell, Bankrate.com