recent all-time lows, according to a popular survey,” data-reactid=”32″>Average mortgage rates are a little higher this week but haven’t ventured too far from their recent all-time lows, according to a popular survey,
Rates rose after a new fee on refinance loans seemed to come out of nowhere earlier in the month.
The fee “caught lenders off guard, placing many in a difficult financial spot and forcing them to raise rates across the board — even for purchase loans, which aren’t directly affected by the new policy — in order to cover their losses,” explains Matthew Speakman, an economist with Zillow.
smart comparison shoppers can still find 30-year mortgage rates below 3%, and even under 2%.” data-reactid=”35″>According to a report this weekend, the new surcharge may be delayed. In the meantime, smart comparison shoppers can still find 30-year mortgage rates below 3%, and even under 2%.
Mortgage rates are higher — but hardly ‘high’
Mortgage rates went up last week for a second straight week and were averaging 2.99% for a 30-year fixed-rate loan, mortgage company Freddie Mac reported on Thursday.
Rates climbed from the previous week’s average of 2.96%, but they weren’t much higher than two weeks earlier, when they averaged just 2.88%. That was a record low for the Freddie Mac survey, which has been monitoring mortgage rates since 1971.
still pretty cheap compared to last year at this time, when 30-year loans were more than a half-point higher at an average 3.55%. The rates in the survey come with an average 0.8 point.” data-reactid=”63″>And, mortgages are still pretty cheap compared to last year at this time, when 30-year loans were more than a half-point higher at an average 3.55%. The rates in the survey come with an average 0.8 point.
The new fee that’s helped push rates higher was scheduled to take effect Sept. 1. Lenders heard about it from Freddie Mac and Fannie Mae, two government-sponsored mortgage giants that buy or back most home loans issued in the U.S.
The companies said they needed to start charging a 0.5% “adverse market refinance fee” because of higher risks and costs stemming from the COVID-19 crisis. The Mortgage Bankers Association warned that the surcharge would increase costs for the average borrower by about $1,400.
Now, the Federal Housing Administration, which regulates Fannie and Freddie, is talking about delaying the fee, though not dropping the matter altogether, The Wall Street Journal reported on Saturday.
Rates still look appealing to homeowners, homebuyers
can chop down their monthly payments and their total interest costs.” data-reactid=”88″>All-time-low mortgage rates have made 2020 a massive year for refinancing, as homeowners have found they can chop down their monthly payments and their total interest costs.
Even with the slight bump-up in rates, research from mortgage data firm Black Knight indicates 15.6 million homeowners still have an opportunity to lower their mortgage rate by at least three-quarters of 1 percentage point (say, from 3.75% to 3%) and shrink their housing costs by an average $289 a month.
homebuyers and are helping real estate markets recover from their coronavirus slump, says George Ratiu, senior economist with Realtor.com.” data-reactid=”94″>Today’s reduced rates also are a huge gift to homebuyers and are helping real estate markets recover from their coronavirus slump, says George Ratiu, senior economist with Realtor.com.
“Demand for homes is surging, with buyers driving activity in suburban markets, as well as second home and vacation destinations,” Ratiu says.
as low as 1.99%.” data-reactid=”96″>If you’re thinking this might be your summer to buy a home, or if you’re a homeowner who needs to stop procrastinating and refinance, don’t be fazed by the slight increases in average mortgage rates. Thirty-year loans are still being advertised as low as 1.99%.
find the best mortgage rate in your area.” data-reactid=”97″>But landing a great rate takes some good old-fashioned shopping around. Experts recommend that you get loan offers from at least five lenders and compare them, to find the best mortgage rate in your area.
check prices from several insurers so you’ll be certain you’re getting the right coverage at the lowest cost.” data-reactid=”98″>Comparison shopping is really smart when you’re buying or renewing your homeowners insurance, too. Go online and check prices from several insurers so you’ll be certain you’re getting the right coverage at the lowest cost.
What other mortgage rates are doing
The latest Freddie Mac survey shows rates on other popular types of mortgages also have moved higher.
for refinance loans, and the rates are way lower than they were at this time in 2019, when the average was 3.03%.” data-reactid=”121″>The average for a 15-year fixed-rate mortgage has jumped to 2.54%, from 2.46% a week earlier. Fifteen-year mortgages are a popular choice for refinance loans, and the rates are way lower than they were at this time in 2019, when the average was 3.03%.
Rates on 5/1 adjustable-rate mortgages, or “ARMS,” have inched upward. The rates on those loans are fixed for five years, then can adjust up or down every year, depending on what other interest rates are doing.
ARMs are currently being offered at starter rates of 2.91%, on average — versus the previous week’s 2.90%.
At this time in 2019, the typical initial rate on a 5/1 ARM was 3.32%.