Mortgage Rates Go Down for the Second Consecutive Week

Decorative wall
Decorative wall

Freddie Mac just released it’s weekly Primary Mortgage Market Survey. It shows U.S weekly average mortgage rates as of  June 7th, 2018.

Freddie Mac 6_7_2018. Primary Mortgage Market Survey. US weekly mortgage averages
Freddie Mac. Primary Mortgage Market Survey. US weekly mortgage averages as of 6/7/2018

This survey shows how U.S weekly average mortgage rates change during the week.

This week’s, June 7th, 2018, survey shows, that 30-year fixed rate mortage went down by 2 points since the last week’s survey.  Mortgage rates went down to 4.54 percent, since the last week survey when it was 4.56 percent.

The 30-year fixed rate mortgage increased by 65 points in a year. For the week of June 8th 2017, when rate average was 3.89%.

The 15-year fixed-rate mortgage went down by 5 points in one week. It is at 4.01 percent now, when last week was 4.06 percent.

The 15-year fixed rate mortgage for the year increased by 85 points. It was 3.16 percent on June 8th, 2017

 

Freddie Mac. US weekly average mortgage os af 6_7_2018
Freddie Mac. US weekly average mortgage as of 6/7/2018

Since April 1971, Freddie Mac has surveyed lenders across the U.S. weekly to determine the average 30-year fixed-rate mortgage rate

Mortgage Rates Just Keep Going Up

Abandoned building in downtown Hollywood, FL
Abandoned building in downtown Hollywood, FL

Freddie Mac released its’ weekly Primary Mortgage Market Survey on May 24th, 2018:

Freddie Mac. 5_24_2018.Primary Mortage Market Survey. US weekly averages mortgage rates.
Freddie Mac. Primary Mortage Market Survey on 5/24/2018. US weekly averages mortgage rates.

This survey shows U.S weekly average mortgage rates and the changes in the rates for the week.

This week’s, May 24th, 2018, survey shows, that 30-year fixed rate mortage went up by 5 points since the last week’s survey.  Mortgage rates moved up over the past week to 4.66 percent.

The 30-year fixed rate mortgage increased by 71 points in a year. For the week of May 25th, 2017, when rate average was 3.95%.

At 4.66% the average mortgage rate is at the highest level since May 5, 2011, when it was 4.71 percent.

Mortgage rates so far in 2018 have risen in 15 out of the first 21 weeks (71 percent). It is the highest share since Freddie Mac began tracking this data for a full year in 1972.

The 15-year fixed-rate mortgage went up by 7 points. It is at 4.15 percent now, when last week was 4.08 percent.

The 15-year fixed rate mortgage for the year increased by 96 points. It was 3.19 percent on May 25th, 2017

Freddie Mac 5_24_2018. US weekly average mortgage rates.
Freddie Mac. US weekly average mortgage rates as of 5/24/2018

If more homeowners decide not to sell their home, because they do not want to get a new mortgage with a higher rate, then available homes shortage can be worse. There would be less homes for buyers to choose from.

What Are Mortgage Points?

Hallway hand-rail
Handrail in the open hallway. Old building in downtown Fort Lauderdale, FL

When homebuyer gets information from a lender about the mortgage cost, it often includes loan rates and points.

A mortgage point is a fee equal to 1 percent of the loan amount. For example, when home loan is $300,000 and it has a fee of two ( 2 ) mortgage points, it is going to be $6,000 fee.

A lender can charge one (1), two (2) or more mortgage points.

Mortgage points are fees paid directly to the lender in order to get a reduced interest rate. This is also called “buying down the rate,” which can lower your monthly mortgage payments.

There are two (2) kinds of mortgage points:

  1. Discount points.
  2. Origination points.

Discount points:

These are prepaid interest on the mortgage loan. The more points home-buyer pays,  the interest rate is lower on the loan.

Origination points:

The lender charges this fee in order to cover the costs of making the loan.

Mortgage Rates Little Change

House in Fort Lauderdale, FL (2)
House in Fort Lauderdale, FL

Freddie Mac released it’s Primary Mortgage Survey for the week ending March 29th,2018. It covers U.S. weekly average mortgage rates:

FreddieMac-Primary Mortgage Market Survey as of March 29th,2018.jpeg
FreddieMac-Primary Mortgage Market Survey for the week of March 29th, 2018          (covering period March 29,2017-March 29,2018) U.S. weekly averag mortgage rates as of 03/29/2018

Mortgage rates for curent week showed a little change, according to the Primary mortgage Market Survey released by Freddie Mac.

Since the beginning of January 2018 fixed-rate mortgage was going up steady every week. For the week of January 4th,2018, 30-year fixed-rate mortgage was 3.95%. It was going up every week, up until the week of March 8th, 2018, when the rate was 4.46%.

The same happened with the 15-year fixed-rate mortgage: the week of January 4th, 15-year mortage rate was 3.38%. It was steady going up every week, when in the week of March 8th,2018 reached 3.94%.

Then finally mortgage rates declined for the first time since the begining of year 2018. For the week of March 15th,2018 fixed-rate 30-year  mortgage dropped to 4.44%. And the 15-year fixed-mortgage dropped to 3.90%

So now, for the last two weeks fixed mortgage rates are steady. Last week they went up 0.01%, but this week they went down 0.01%.

For the week of March 29th, 29 30-year fixed-rate mortgage is at 4.44%. And 15-year fixed-rate mortgage is at 3.9%

 

 

Mortgage Rates Decline for the First Time Since the Beginning of 2018

Primary Mortgage Market Survey.US Weekly Average Mortgage Rates During Period March 15, 2017-March 15, 2018
Primary Mortgage Market Survey.    US Weekly Average Mortgage Rates During Period March 15, 2017-March 15, 2018

 

I wrote a blog post two weeks ago that mortgages rates were going up every week in 2018. As of March 1st, 30-year fixed mortgage rate reached 4.43 percent.

The survey for the week of March 8th, 2018 said that fixed mortgage rate went up again to 4.46 percent.

Primary Mortgage Market Survey of week of March 15th, 2018 announced that U.S. weekly average 30-year fixed-rate mortgage dropped 2 basis points to 4.44 percent in this week’s survey, its first decrease this year.

So, for nine straight weeks of this year average mortgage rate went up to 4.46 percent. When finally for the week of March 15th,2018 survey rate dropped to the rate of 4.44 percent.

I really would like to see what this week survey will say.