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According to Mortgage Bankers Association (MBA) weekly survey, California mortgage rates increased again last week. The rates have now increased for five out of last six weeks. This is the third consecutive week that 30 year fixed rates have gone up. Overall the rates have gone up by .25% after hitting the lowest levels in November, 2012.
Conforming, High-Balance and FHA 30 Year Fixed Rates
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 3.62 percent from 3.61 percent, with points increasing to 0.43 from 0.38 for 80 percent loan-to-value ratio (LTV) loans. Freddie Mac survey too reported that the 30 Year Fixed rates went up last week.
30 year fixed average rates for conforming jumbo (high balance) loans were at 3.85% with 0.34 points.
The average interest rate for FHA 30-year fixed-rate mortgages increased to 3.40 percent from 3.39 percent, with points decreasing to 0.53 from 0.58.
Outlook for California Mortgage Rates
As mentioned in my last week blog post, the outlook for mortgage rates continue to be stable to bearish. Meaning, best case scenario they would stay the same. But on the flip side it could worsen another .125%. Supporting the mortgage market is the fact that the Fed is still buying mortgage backed securities (MBSs) and treasuries.
I repeat the lock advice from my last week commentary – lock on the day when the market improves. Work with a lender who tracks mortgage backed securities on a regular basis so that they can advise you when to lock. At Arcus Lending, we do exactly that.