Mortgage rates for fixed rate programs fell on average this week following Fed Chair’s comments on continued bond purchases. On Friday, July 19th, 2013 30 year fixed mortgage rates were advertised in the rate tables as low as 4.000% (APR: 4.101%, Points: 0.000, Fees in APR: $1995, Lender: AimLoan.com.) 15 year fixed rates were posted as low as 3.25% (APR: 3.338%, Points: 0.000, Fees in APR: $995, Lender: Rate30,) and 5/1 ARM interest rates as low as 3.125% (APR: 2.799%, Points: 0.000, Fees in APR: $0, Lender: Loan Depot) were advertised on the site.
This drop in the cost of home financing came as the market reacted to some negative news relating to the economic recovery such as the 7.5% drop in housing starts in June 2013 (when compared to May 2013 numbers) reported by the US Department of Housing and Urban Development on Wednesday, July 17th, 2013. In addition Fed Chair Ben Bernanke calmed some investors’ fears saying that bond purchases won’t be slowed until the economy is ready.
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, July 18th, 2013 also showed the decline in pricing. The data revealed that 30 year fixed mortgage rates fell to an average of 4.37% (0.7 points), from 4.51% (0.8 points) the week before. 15 year fixed rates were also down on average to 3.41% (0.7 points) from 3.53% (0.8 points) one week earlier. 5 year adjustable rate pricing moved lower to 3.17% (0.6 points) on average, down from 3.26% (0.7 points.)
“This dip in mortgage rates will be welcome news to real estate shoppers during this busy summer buying season,” commented Shaun Hamman, VP of Residential Lending at American Financial Resources, a National mortgage lender. “Home affordability remains strong throughout much of the US, and when mortgage rates drop that only increases,” he continued.
Below is a snapshot of interest rates for a variety of programs listed on 7/19/13 on ForTheBestRate.com. New Orleans, LA mortgage rates represented in this survey. Rates are subject to change.
30 Year Fixed Mortgage Rates
Rate30 – 4.125% Note Rate, 4.176% APR, 0.000 Points, $995 Fees in APR
Loan Depot – 4.125% Note Rate, 4.209% APR, 1.000 Points, $0 Fees in APR
15 Year Fixed Mortgage Rates
First Internet Bank – 3.125% Note Rate, 3.397% APR, 1.000 Points, $1428 Fees in APR
AmeriSave – 3.125% Note Rate, 3.414% APR, 0.768 Points, $1995 Fees in APR
10 Year Fixed Mortgage Rates
Roundpoint Mortgage Company – 3.250% Note Rate, 3.377% APR, 0.000 Points, $995 Fees in APR
PennyMac – 3.625% Note Rate, 3.625% APR, 0.000 Points, $0 Fees in APR
5 Year Adjustable Rate Mortgage Rates
AimLoan.com – 2.625% Note Rate, 2.982% APR, 0.707 Points, $1995 Fees in APR
Greenlight Financial Services – 2.750% Note Rate, 3.049% APR, 1.000 Points, $1995 Fees in APR
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