The survey for mortgage interest rates declined for the fifth straight week. According to mortgage investor Freddie Mac (Federal National Home Loan Mortgage Corporation), the average 30 year rate has dipped to 4.820%.
This is good news at the consumer level especially those who are purchasing or refinancing a home and are ready to lock in their interest rate TODAY. However, for most that is not the case because transaction activity is very flat. The news does bring a sigh of relief for those who track economic data as it provides a good trend or a solid benchmark.
Interest rates are predicted to remain flat for the short term. This is due to a sagging economy and a home buying inventory flooded with more properties than buyers. Until the economy gets on its feet and consumer confidence is an everyday reality, the news of rates under 5% are like window shopping.
Summer is several weeks away and usually marks good news for those in the housing industry. The trick for those watching interest rates is to be in the best position to nab whichever interest rate is targeted for their transaction. Those purchasing a home typically do so within a 60 to 90 day period. While today’s news is a positive the key is to be within the closing timeframe. That is usually within 30 days and sooner as the lower the time the more likelihood you can lock and secure your rate. Refinancing can be achieved within 30 days but again the trick to taking advantage of low rates is to be in a position to close. Otherwise, whatever rate is quoted will seem like a mirage as it will be unattainable.
OVERALL Loan survey results* (bankrate.com)
- 30-year fixed: 4.82% — down from 4.88% last week (avg. points:0.4)
- 15-year fixed: 4.00% — down from 4.05% last week (avg. points:0.34)
- 5/1 ARM: 3.52% — down from 3.56% last week (avg. points:0.38)
Loan Program Survey Data (click here)
Current loan limits* (Freddie Mac)
Maximum Base Conforming Loan Limits for properties NOT located in Alaska, Hawaii, Guam & U.S. Virgin Islands
1 unit – $417,000
2 unit – $533,850
3-unit – $645,300
4-unit – $801,950
Maximum Base Conforming Loan Limits for properties located in Alaska, Hawaii, Guam & U.S. Virgin Islands
1 unit – $625,500
2 unit – $800,775
3 unit – $967,950
4-unit – $1,202,925