Author bio section

I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.

Purchase volume should be positively affected by higher house inventory in 2020. Inventory which has been a concern for some time now is expected to be tackled by construction initiatives that are on the way now. One point of note is the question of housing affordability which may become a malaise in the interior areas, too (at this point affordability issues are more of a coastal phenomenon). Here is hoping affordable houses in the FHB vertical pick up and soon.

Mortgage Rates: rates increase with exception of 15 Y Fixed

This week’s Mortgage Banking Associations’ (MBA) weekly rate survey reveals an increase across the board with one exception.

According to the MBA Weekly Survey: “The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) increased to 3.99 percent from 3.98 percent, with points remaining unchanged at 0.33 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.”

1 point in cost = 1% of the loan amount

“The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) increased to 3.97 percent from 3.96 percent, with points decreasing to 0.25 from 0.26
(including the origination fee) for 80 percent LTV loans. The effective rate remained unchanged from last week.”

“The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.39 percent from 3.40 percent, with points remaining unchanged at 0.26 (including the origination fee) for 80 percent LTV loans. The effective rate remained unchanged from last week.” 

“The average contract interest rate for 5/1 ARMs increased to 3.38 percent from 3.28 percent, with points decreasing to 0.21 from 0.23 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.”

Mortgage Rate Activity and Predictions

Freddie Mac’s weekly mortgage survey has reported that the conforming rates for the week- 19th December to 25th December- have remained unchanged for 15 Y Fixed and moved up by 0.01% 30 Y Fixed.

Freddie Mac’s weekly mortgage survey noted, “The 30-year fixed-rate mortgage rate saw little change again this week and averaged just 3.9% during 2019, the fourth lowest annual average since 1971 when Freddie Mac started its weekly survey. Heading into 2020, low mortgage rates and the improving economy will be the major drivers of the housing market with steady increases in home sales, construction and home prices. While the outlook for the housing market is bright, worsening housing affordability is no longer a coastal phenomenon and is spreading to many interior markets and it is a threat to the continued recovery in housing and the economy.”

Mortgage Rate Lock Advice

I would recommend you to Lock if you are closing within the next 3 weeks and Float if you are closing any time beyond that.

Related Posts

  • 96
    Home builders are looking more confident and housing starts have shot up in November. This is good tidings for aspiring buyers. All 2019, we have fought against low inventory but with some luck, the supply deficit may turn a corner in 2020. Purchase applications usually come down at this time…
    Tags: rate, percent, mortgage, week, december, year, weekly, survey, points, increased
  • 95
    The speed of residential construction has shot up over the past few months and is well in line to reach its best figures in over a decade. For a market that has been short on inventory for some time now, this is great news, especially with the spring season already…
    Tags: rate, percent, mortgage, week, increased, rates, weekly, survey, interest, points
  • 93
    The mortgage market had reacted favorably to the Coronavirus threat. Now that the trend is reversing, we may see a partial correction in the mortgage market. It is nothing new. Global threats that loom suddenly bring about economic movements with it and just as soon as the threats disappear, the…
    Tags: rate, mortgage, percent, rates, week, interest, weekly, survey, points, average
  • 93
    Consumer sentiment may rally from here based on multiple positive indices, near all-time-low rates, and the general good feeling that a new year brings. House constructions as well as number of homes sold are expected to pick up. While Americans are aware that the expansionary phase can't last eternally, they…
    Tags: rate, rates, mortgage, week, percent, year, weekly, survey, points, average
  • 93
    Phase One of the Trade deal isn't expected to deliver a panacea. It, however, augurs well for the economy under pressure as the positive spin to the Trade War, augmented by stable inflation and decent job growth, is likely to keep nerves in check. January is a calm month. Everyone…
    Tags: rate, percent, mortgage, week, rates, year, weekly, survey, points, average