Mortgage rates moved lower this week, reversing the trend seen over six weeks of increases.
Mortgage rates for the most popular fixed rate programs were down on average this week following several weeks of rising interest rates. On Friday, June 21st, 2013 30 year fixed mortgage rates were advertised in the rate tables on ForTheBestRate.com as low as 3.875% (APR: 3.968%, Points: 1.000, Fees in APR: $195, Lender: United Home Loans.)
15 year fixed rates were posted as low as 3.250% (APR: 3.250%, Points: 0.000, Fees in APR: $0, Lender: Sebonic Financial,) and 5/1 ARM interest rates as low as 3.000% (APR: 2.855%, Points: 0.000, Fees in APR: $1950, Lender: Loan Depot) were advertised.
Positive news of a strengthening economy such as consumer confidence reaching a five year high in May and rising home prices have caused a steady uptick in mortgage pricing in recent weeks, though this week saw fixed mortgage rates dip slightly. “While rates have moved up from their all-time lows, they’re still extremely attractive for those looking to cash-out some of their homes’ equity or shorten their terms,” commented Andy Mears of American Bank Mortgage in Indianapolis, Indiana.
The weekly survey of mortgage rates released by Freddie Mac, a government sponsored enterprise and purchaser of mortgage loans on the secondary market, on Thursday, June 20th, 2013 also revealed the drop in pricing. The data showed that 30 year fixed mortgage rates fell to an average of 3.93% (0.8 points), down from 3.98% (0.7 points) the week before. 15 year fixed rates were also lower on average at 3.04% (0.7 points) after reaching 3.10% (0.7 points) one week earlier. 5 year adjustable rate pricing remained 2.79% (0.5 points) on average, with only the fees and points adjusting from late week’s 2.79% (0.6 points.)
“We are likely to see mortgage rates move higher again following the recent comments from Fed Chair, Ben Bernanke indicating the Federal Reserve may ease back on bond purchases in the coming months,” commented Shaun Hamman, VP of Residential Lending at American Financial Resources, a National mortgage lender. “Still, we don’t expect that small increases to mortgage rates will have much impact on the high demand for real estate. Low housing prices, historically low financing costs, and a strengthening economy make this a great time to buy,” he continued.
Below is a snapshot of interest rates for a variety of programs listed on 6/20/13 on ForTheBestRate.com. Minneapolis, MN mortgage rates represented in this survey. Rates are subject to change. Please visit the site to view the criteria used in the survey.
30 Year Fixed Mortgage Rates
AimLoan.com – 3.750% Note Rate, 3.993% APR, 1.708 Points, $1995 Fees in APR
Sebonic Financial – 4.000% Note Rate, 4.083% APR, 1.000 Points, $0 Fees in APR
15 Year Fixed Mortgage Rates
First Internet Bank – 3.000% Note Rate, 3.271% APR, 1.000 Points, $1428 Fees in APR
Roundpoint Mortgage Company – 3.000% Note Rate, 3.291% APR, 2.000 Points, $0 Fees in APR
10 Year Fixed Mortgage Rates
Penny Mac – 3.250% Note Rate, 3.250% APR, 0.000 Points, $0 Fees in APR
Home Loans Today – 3.125% Note Rate, 3.312% APR, 0.000 Points, $1464 Fees in APR
5 Year Adjustable Rate Mortgage Rates
PenFed – 2.625% Note Rate, 2.877% APR, 1.000 Points, $0 Fees in APR
Gold Star Mortgage Financial Group – 3.250% Note Rate, 2.898% APR, 0.000 Points, $1025 Fees in APR
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