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Mortgage Rate Update

Mortgage rates for 30-year fixed mortgages fell this week, with the current rate borrowers were quoted on Zillow at 3.79 percent, down 4 basis points from last week.

The 30-year fixed mortgage rate fell Friday, then hovered around 3.80 percent before dipping to the current rate on Tuesday.

“Last week, mortgage rates remained flat until weak U.S. economic data and stronger than expected oil supplies caused a drop at the week’s end,” said Erin Lantz, vice president of mortgages at Zillow. “Rates are unlikely to move much higher this week, as markets make sense of the political situation in Europe and look to U.S. inflation and output data, as well as the release of minutes from the Federal Open Market Committee’s October meeting and commentary from several committee voters.”

Additionally, the 15-year fixed mortgage rate was 2.95 percent, and for 5/1 ARMs, the rate was 3.00 percent.

Check Zillow for mortgage rate trends and up-to-the-minute mortgage rates for your state, or use the mortgage calculator to calculate monthly payments at the current rates.

*The weekly mortgage rate chart illustrates the average 30-year fixed interest rate in six-hour intervals. Zillow article


 

rod_smallSo what’s up for 2016? Well… Lots of speculation!

U.S. consumers expect a rise in rates from late 2015 thru the new year.

According to Fannie Mae’s National Housing Survey, 51% of consumers think mortgage rates are on the way up, and another 44% believe rates will remain within their current range.

 

Don’t be swayed by popular opinion, however. Consumers are notoriously terrible at predicting the future of mortgage rates — just as bad as Wall Street even.

Mortgage rates have steadfastly defied expectations this year and, despite a late-year increase, pricing remains firmly below its year-ago levels.

Low rates have fueled a surge in home sales nationwide, and have pushed refinance volume to its highest point since rates were at an all-time low earlier this decade.

 

The Fed Funds Rate doesn’t correlate with mortgage rates, but the Fed’s next move could spark a bond market sell-off which would lead interest rates up.

Fannie Mae’s survey seems to suggest that outcome, anyway. Nearly everyone surveyed said mortgage rates can’t possibly stay this low in 2016.

Lucky for you, predicting the future is difficult. Consumers rarely get it right and today’s rates are near their lowest of all-time. (themortgagereports.com)

 

Incidentally, December is notoriously a low buying month due to the holidays, so if you are in the market to buy a home, out your shopping into high gear! It just might pay off!

 

 

Rod Randolph- AMERICAN DREAM REALTY (find your new home!)

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