Mortgage Rates Rise To The Highest Levels In ~3 Years

After rising for the 5th straight week, 30-Year-Fixed mortgage rates are now at the highest levels since April 2014. 15 Year-Fixed is fairing even worse; now at the highest levels in almost 7 years. According to Mortgage Banker Association weekly survey,  30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased to its highest level since April 2014, 4.50 percent, from 4.41 percent, with points increasing to 0.57 from 0.56. 1 point is equal to 1% of the loan amount. The interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than…continue reading →

Mortgage Interest Rate Prediction for 2018

Fannie Mae, Freddie Mac, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR) have all issued their economic forecasts for 2018, including their predictions for where mortgage interest rates will be by the 4th quarter of the year. And while their attention is focused on the same key factors impacting our economy this year - individual predictions for the year ending rates range from a stable 4.1% (Fannie Mae) to a cringe-worthy 4.9% (Freddie Mac and MBA) 30 year fixed rate mortgages. Clearly -- they’re not buying their crystal balls…continue reading →

Will Mortgage Rates Ever Go Back Up?

Some of you reading this will remember this number - 16.63 percent. That was the average mortgage rate in 1981. In fact, from 1980 to 1991 the average mortgage never dipped below 10 percent. The 1990’s were a little kinder for homebuyers and homeowners though - the average mortgage rate for that decade was a mere 8.11 percent. As we ushered in a new millennia in 2000 the average mortgage rate stood squarely at 8.05 percent before dipping into new territory in 2003 - the fives. New ground was broken yet again in…continue reading →

The Insider Secret of a No Closing Cost Mortgage

Mortgage quotes come with options that you may not be aware exist, but definitely need to understand if you want the best mortgage for your unique situation. The terminology used by mortgage lenders to describe these options is probably foreign to most borrowers - par, above par and below par pricing. These mortgage terms also come with more consumer friendly names - especially above par pricing and below par pricing. Consider par pricing in golfing terms - if you make a par you are even. You neither pay more or less for the…continue reading →

What Brexit Means to the Mortgage Market

The United Kingdom - surprisingly and foolishly in my opinion - voted to exit the European Union yesterday. Brexit - dutifully dubbed by the acronym loving media - will have wide-ranging effects on multiple continents and countries - including right here in the USA. One of the biggest, and most immediate, effects for Americans is how it will change mortgage interest rates. In fact, the positive change in rates can already be felt - for now. In the typical “flight to safety” reaction by international investors, they moved assets from flailing equity markets…continue reading →

What to Expect from Mortgage Rates in the Second Half of 2016

Mortgage rates are a fickle beast affected by many factors. They can change on the drop of hat and fluctuate constantly. Your ultimate mortgage rate is determined by your overall risk as a borrower through a mechanism called loan level pricing (LLPA) which adds adjustments to your rate based on risk. Combine “base” rates - driven by actively traded pools of mortgages known as Mortgage-backed securities (MBS) - with your loan level pricing adjustments and you get your mortgage rate. Get a Customized Live Rate Quote If you have ever played the stock…continue reading →

The Reason You Are Getting Higher Mortgage Rate Than Your Friend

You checked out Freddie Mac’s average mortgage rate report. You looked at Bankrate too. You called your mortgage lender - or multiple lenders - but your mortgage rate quote is higher than the rates you see online. Why? If you are consistently being quoted a higher rate than what you see listed online you likely pose more risk to the lender and the bump to your mortgage rate is the result something called "risk-based pricing". More formally, it's known as the loan-level pricing adjustments (LLPA). They apply to Fannie and Freddie - aka…continue reading →

2016 Mortgage Rate Outlook

2015 was an easier year than most, for mortgage rate shoppers. Consistency was the standard,  with rates generally hovering  below 4% for most of the year. That consistency was a mortgage market anomaly though. In fact, it’s been nearly 20 years since we’ve had such a consistent mortgage rate environment. You have to go all the way back to 1998 according to Freddie Mac’s mortgage rate benchmark survey - the Primary Mortgage Market Survey® (PMMS®) - to find such a small amount of rate movement. Get PreApproved for a MortgageGet PreApproved for a Mortgage The “Primary Mortgage…continue reading →

How the Fed Rate Increase Affects Mortgage Rates

The Federal Open Market Committee - also known as the Federal Reserve or just the “FED” -  makes big decisions that impact the future of the American (and even the world) economy. The Federal Open Market Committee (FOMC) is a rotating, 12-person sub-committee within the Federal Reserve, headed by Federal Reserve Chairwoman Janet Yellen. The FOMC meets eight times annually on a pre-determined schedule, and on an emergency basis, when needed (like in 2008). What they say matters. They move markets of all kinds with their actions and also their words. This time…continue reading →

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