Mortgage Rates Archives - Hanover Mortgages

May 7, 2021

30-Year Fixed Mortgage Rate Hits Yet Another Record Low, Falls Below 3.2 Percent for the First Time

As of May 5, the rate borrowers were quoted on Zillow for 30-year fixed mortgages was 2.72%.

Abstract illustration of houses and charts

As of May 5, the rate borrowers were quoted on Zillow for 30-year fixed mortgages was 2.72%.

Mortgage rates fall to lowest levels in months.

“Mortgage rates fell slightly again this week, pushing rates to their lowest level since mid-to-late February,” said Zillow Economist Matthew Speakman. “With few surprising economic data or pandemic-related developments this week, mortgage rates and the bond yields that tend to influence them saw little reason to move significantly over the past seven days. Unlike stocks, bonds and mortgage rates brushed aside comments made by Treasury Secretary Janet Yellen, in which she suggested (but did not recommend) that interest rates will likely have to rise somewhat in order to ensure that the economy doesn’t overheat. But this period of relative calm will be put to the test in the coming days. April employment figures and inflation data, two key gauges of the economy’s path forward, are due this week, and stronger-than-expected readings of either – or both – reports will likely revert mortgage rates back upward.”

Additionally, the 15-year fixed mortgage rate was 2.09%, and for 5/1 ARMs, the rate was 2.38%.

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 above illustrates the average 30-year fixed interest rate for the past week. Here’s a comprehensive look at the current mortgage rates for all loan types:

Today’s Average Rates for Conventional Loans

Program	Interest Rate	APR	1 Wk Change
30-Year Fixed	2.77%	2.82%	0.11%
20-Year Fixed	2.63%	2.71%	0.06%
15-Year Fixed	2.09%	2.17%	0.03%
10-Year Fixed	2.03%	2.15%	-0.08%
7/1 ARM	2.22%	2.92%	0.26%
5/1 ARM	2.19%	3.04%	0.21%
3/1 ARM	0%	0%	0%

A 30-Year Fixed loan of $300,000 at 2.77% APR with a $75,000 down payment will have a monthly payment of $1,227. A 20-Year Fixed loan of $300,000 at 2.63% APR with a $75,000 down payment will have a monthly payment of $1,609. A 15-Year Fixed loan of $300,000 at 2.09% APR with a $75,000 down payment will have a monthly payment of $1,942. A 10-Year Fixed loan of $300,000 at 2.03% APR with a $75,000 down payment will have a monthly payment of $2,764. A 7/1 ARM loan of $300,000 at 2.22% APR with a $75,000 down payment will have a monthly payment of $1,141. A 5/1 ARM loan of $300,000 at 2.19% APR with a $75,000 down payment will have a monthly payment of $1,137. A 3/1 ARM loan of $0 at 0% APR with a $0 down payment will have a monthly payment of $0. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Today’s Average Rates for Government Loans

Program	Interest Rate	APR	1 Wk Change
30-Year Fixed FHA	2.4%	3.07%	0.17%
30-Year Fixed VA	2.47%	2.73%	0.12%
15-Year Fixed FHA	2.23%	2.93%	0.09%
15-Year Fixed VA	2.42%	2.89%	0.17%
5/1 ARM FHA	2.59%	2.97%	0.02%
5/1 ARM VA	3.17%	2.83%	-0.27%

A 30-Year Fixed FHA loan of $300,000 at 2.4% APR with a $75,000 down payment will have a monthly payment of $1,170. A 30-Year Fixed VA loan of $300,000 at 2.47% APR with a $75,000 down payment will have a monthly payment of $1,180. A 15-Year Fixed FHA loan of $300,000 at 2.23% APR with a $75,000 down payment will have a monthly payment of $1,962. A 15-Year Fixed VA loan of $300,000 at 2.42% APR with a $75,000 down payment will have a monthly payment of $1,988. A 5/1 ARM FHA loan of $300,000 at 2.59% APR with a $75,000 down payment will have a monthly payment of $1,200. A 5/1 ARM VA loan of $300,000 at 3.17% APR with a $75,000 down payment will have a monthly payment of $1,291. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Today’s Average Rates for Jumbo Loans

Program	Interest Rate	APR	1 Wk Change
30-Year Fixed Jumbo	3.2%	3.25%	0.09%
20-Year Fixed Jumbo	3.28%	3.32%	0.25%
15-Year Fixed Jumbo	2.81%	2.89%	0.11%
10-Year Fixed Jumbo	2.5%	2.6%	0.1%
7/1 ARM Jumbo	2.68%	3.17%	-0.35%
5/1 ARM Jumbo	2.75%	3.21%	-0.25%
3/1 ARM Jumbo	2.14%	2.74%	0%

A 30-Year Fixed Jumbo loan of $600,000 at 3.2% APR with a $150,000 down payment will have a monthly payment of $2,595. A 20-Year Fixed Jumbo loan of $600,000 at 3.28% APR with a $150,000 down payment will have a monthly payment of $3,411. A 15-Year Fixed Jumbo loan of $600,000 at 2.81% APR with a $150,000 down payment will have a monthly payment of $4,089. A 10-Year Fixed Jumbo loan of $600,000 at 2.5% APR with a $150,000 down payment will have a monthly payment of $5,656. A 7/1 ARM Jumbo loan of $600,000 at 2.68% APR with a $150,000 down payment will have a monthly payment of $2,428. A 5/1 ARM Jumbo loan of $600,000 at 2.75% APR with a $150,000 down payment will have a monthly payment of $2,449. A 3/1 ARM Jumbo loan of $600,000 at 2.14% APR with a $150,000 down payment will have a monthly payment of $2,259. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Source: zillow.com

May 7, 2021

30-Year Fixed Mortgage Rate Holds Steady

As of May 5, the rate borrowers were quoted on Zillow for 30-year fixed mortgages was 2.72%.

Mortgage rates fall to lowest levels in months.

Additionally, the 15-year fixed mortgage rate was 2.09%, and for 5/1 ARMs, the rate was 2.38%.

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 above illustrates the average 30-year fixed interest rate for the past week. Here’s a comprehensive look at the current mortgage rates for all loan types:

Today’s Average Rates for Conventional Loans

Program	Interest Rate	APR	1 Wk Change
30-Year Fixed	2.79%	2.84%	0.09%
20-Year Fixed	2.66%	2.73%	0.04%
15-Year Fixed	2.1%	2.19%	0.02%
10-Year Fixed	2.03%	2.15%	-0.08%
7/1 ARM	2.24%	2.94%	0.24%
5/1 ARM	2.27%	3.08%	0.17%
3/1 ARM	0%	0%	0%

A 30-Year Fixed loan of $300,000 at 2.79% APR with a $75,000 down payment will have a monthly payment of $1,231. A 20-Year Fixed loan of $300,000 at 2.66% APR with a $75,000 down payment will have a monthly payment of $1,612. A 15-Year Fixed loan of $300,000 at 2.1% APR with a $75,000 down payment will have a monthly payment of $1,944. A 10-Year Fixed loan of $300,000 at 2.03% APR with a $75,000 down payment will have a monthly payment of $2,764. A 7/1 ARM loan of $300,000 at 2.24% APR with a $75,000 down payment will have a monthly payment of $1,144. A 5/1 ARM loan of $300,000 at 2.27% APR with a $75,000 down payment will have a monthly payment of $1,149. A 3/1 ARM loan of $0 at 0% APR with a $0 down payment will have a monthly payment of $0. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Today’s Average Rates for Government Loans

Program	Interest Rate	APR	1 Wk Change
30-Year Fixed FHA	2.41%	3.07%	0.16%
30-Year Fixed VA	2.49%	2.75%	0.1%
15-Year Fixed FHA	2.23%	2.94%	0.08%
15-Year Fixed VA	2.42%	2.89%	0.17%
5/1 ARM FHA	2.59%	2.97%	0.02%
5/1 ARM VA	3.09%	2.77%	-0.22%

A 30-Year Fixed FHA loan of $300,000 at 2.41% APR with a $75,000 down payment will have a monthly payment of $1,170. A 30-Year Fixed VA loan of $300,000 at 2.49% APR with a $75,000 down payment will have a monthly payment of $1,183. A 15-Year Fixed FHA loan of $300,000 at 2.23% APR with a $75,000 down payment will have a monthly payment of $1,962. A 15-Year Fixed VA loan of $300,000 at 2.42% APR with a $75,000 down payment will have a monthly payment of $1,989. A 5/1 ARM FHA loan of $300,000 at 2.59% APR with a $75,000 down payment will have a monthly payment of $1,200. A 5/1 ARM VA loan of $300,000 at 3.09% APR with a $75,000 down payment will have a monthly payment of $1,279. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Today’s Average Rates for Jumbo Loans

Program	Interest Rate	APR	1 Wk Change
30-Year Fixed Jumbo	3.24%	3.28%	0.06%
20-Year Fixed Jumbo	3.3%	3.34%	0.23%
15-Year Fixed Jumbo	2.83%	2.9%	0.09%
10-Year Fixed Jumbo	2.5%	2.6%	0.1%
7/1 ARM Jumbo	2.65%	3.1%	-0.28%
5/1 ARM Jumbo	2.66%	3.15%	-0.18%
3/1 ARM Jumbo	2.14%	2.74%	0%

A 30-Year Fixed Jumbo loan of $600,000 at 3.24% APR with a $150,000 down payment will have a monthly payment of $2,606. A 20-Year Fixed Jumbo loan of $600,000 at 3.3% APR with a $150,000 down payment will have a monthly payment of $3,416. A 15-Year Fixed Jumbo loan of $600,000 at 2.83% APR with a $150,000 down payment will have a monthly payment of $4,093. A 10-Year Fixed Jumbo loan of $600,000 at 2.5% APR with a $150,000 down payment will have a monthly payment of $5,656. A 7/1 ARM Jumbo loan of $600,000 at 2.65% APR with a $150,000 down payment will have a monthly payment of $2,418. A 5/1 ARM Jumbo loan of $600,000 at 2.66% APR with a $150,000 down payment will have a monthly payment of $2,420. A 3/1 ARM Jumbo loan of $600,000 at 2.14% APR with a $150,000 down payment will have a monthly payment of $2,259. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Source: zillow.com

May 5, 2021

30-Year Fixed Mortgage Rate Hovers Above All-Time Low

As of April 28, the rate borrowers were quoted on Zillow for 30-year fixed mortgages was 2.78%.

Mortgage rates fall despite strong economic data reports.

“Mortgage rates fell again this week, continuing the downward trend they’ve exhibited for most of April,” said Zillow Economist Matthew Speakman. “In what was a relatively unremarkable week for mortgage rates, the modest movement was partially driven by discussions about a proposed increase in capital gains tax rates – which placed downward pressure on bond yields and thus rates – and anticipation of a key announcement by the Federal Reserve. Fed Chair Jerome Powell reiterated on Wednesday that the Central Bank has no immediate plans to increase interest rates or curb the purchases of mortgage-backed securities – a position that placed more downward pressure on bond yields and is likely to result in more mortgage decreases in the coming days. Looking ahead, with a slew of key economic reports on the horizon – including consumer spending and inflation data – the relatively muted mortgage rate activity from the past couple weeks may transition to more significant movements.”

Additionally, the 15-year fixed mortgage rate was 2.11%, and for 5/1 ARMs, the rate was 2.55%.

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 above illustrates the average 30-year fixed interest rate for the past week. Here’s a comprehensive look at the current mortgage rates for all loan types:

Today’s Average Rates for Conventional Loans

Program	Interest Rate	APR	1 Wk Change
30-Year Fixed	2.8%	2.85%	0.08%
20-Year Fixed	2.66%	2.73%	0.03%
15-Year Fixed	2.1%	2.19%	0.02%
10-Year Fixed	2.01%	2.15%	-0.08%
7/1 ARM	2.28%	2.96%	0.22%
5/1 ARM	2.34%	3.1%	0.15%
3/1 ARM	0%	0%	0%

A 30-Year Fixed loan of $300,000 at 2.8% APR with a $75,000 down payment will have a monthly payment of $1,232. A 20-Year Fixed loan of $300,000 at 2.66% APR with a $75,000 down payment will have a monthly payment of $1,613. A 15-Year Fixed loan of $300,000 at 2.1% APR with a $75,000 down payment will have a monthly payment of $1,944. A 10-Year Fixed loan of $300,000 at 2.01% APR with a $75,000 down payment will have a monthly payment of $2,762. A 7/1 ARM loan of $300,000 at 2.28% APR with a $75,000 down payment will have a monthly payment of $1,151. A 5/1 ARM loan of $300,000 at 2.34% APR with a $75,000 down payment will have a monthly payment of $1,159. A 3/1 ARM loan of $0 at 0% APR with a $0 down payment will have a monthly payment of $0. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Today’s Average Rates for Government Loans

Program	Interest Rate	APR	1 Wk Change
30-Year Fixed FHA	2.33%	2.99%	0.24%
30-Year Fixed VA	2.54%	2.81%	0.05%
15-Year Fixed FHA	2.11%	2.85%	0.17%
15-Year Fixed VA	2.53%	3.02%	0.04%
5/1 ARM FHA	2.6%	2.97%	0.02%
5/1 ARM VA	3.06%	2.75%	-0.19%

A 30-Year Fixed FHA loan of $300,000 at 2.33% APR with a $75,000 down payment will have a monthly payment of $1,159. A 30-Year Fixed VA loan of $300,000 at 2.54% APR with a $75,000 down payment will have a monthly payment of $1,191. A 15-Year Fixed FHA loan of $300,000 at 2.11% APR with a $75,000 down payment will have a monthly payment of $1,946. A 15-Year Fixed VA loan of $300,000 at 2.53% APR with a $75,000 down payment will have a monthly payment of $2,004. A 5/1 ARM FHA loan of $300,000 at 2.6% APR with a $75,000 down payment will have a monthly payment of $1,200. A 5/1 ARM VA loan of $300,000 at 3.06% APR with a $75,000 down payment will have a monthly payment of $1,273. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Today’s Average Rates for Jumbo Loans

Program	Interest Rate	APR	1 Wk Change
30-Year Fixed Jumbo	3.22%	3.27%	0.07%
20-Year Fixed Jumbo	3.29%	3.33%	0.24%
15-Year Fixed Jumbo	2.86%	2.94%	0.06%
10-Year Fixed Jumbo	2.52%	2.6%	0.1%
7/1 ARM Jumbo	2.68%	3.07%	-0.25%
5/1 ARM Jumbo	2.61%	3.06%	-0.09%
3/1 ARM Jumbo	2.14%	2.74%	0%

A 30-Year Fixed Jumbo loan of $600,000 at 3.22% APR with a $150,000 down payment will have a monthly payment of $2,602. A 20-Year Fixed Jumbo loan of $600,000 at 3.29% APR with a $150,000 down payment will have a monthly payment of $3,414. A 15-Year Fixed Jumbo loan of $600,000 at 2.86% APR with a $150,000 down payment will have a monthly payment of $4,102. A 10-Year Fixed Jumbo loan of $600,000 at 2.52% APR with a $150,000 down payment will have a monthly payment of $5,660. A 7/1 ARM Jumbo loan of $600,000 at 2.68% APR with a $150,000 down payment will have a monthly payment of $2,427. A 5/1 ARM Jumbo loan of $600,000 at 2.61% APR with a $150,000 down payment will have a monthly payment of $2,406. A 3/1 ARM Jumbo loan of $600,000 at 2.14% APR with a $150,000 down payment will have a monthly payment of $2,259. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Source: zillow.com

May 5, 2021

30-Year Fixed Mortgage Rate Rises

As of April 28, the rate borrowers were quoted on Zillow for 30-year fixed mortgages was 2.78%.

Mortgage rates fall despite strong economic data reports.

Additionally, the 15-year fixed mortgage rate was 2.11%, and for 5/1 ARMs, the rate was 2.55%.

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 above illustrates the average 30-year fixed interest rate for the past week. Here’s a comprehensive look at the current mortgage rates for all loan types:

Today’s Average Rates for Conventional Loans

Program	Interest Rate	APR	1 Wk Change
30-Year Fixed	2.8%	2.85%	0.08%
20-Year Fixed	2.66%	2.73%	0.03%
15-Year Fixed	2.1%	2.19%	0.02%
10-Year Fixed	2.01%	2.15%	-0.08%
7/1 ARM	2.28%	2.96%	0.22%
5/1 ARM	2.34%	3.1%	0.15%
3/1 ARM	0%	0%	0%

Today’s Average Rates for Government Loans

Program	Interest Rate	APR	1 Wk Change
30-Year Fixed FHA	2.33%	2.99%	0.24%
30-Year Fixed VA	2.54%	2.81%	0.05%
15-Year Fixed FHA	2.11%	2.85%	0.17%
15-Year Fixed VA	2.53%	3.02%	0.04%
5/1 ARM FHA	2.6%	2.97%	0.02%
5/1 ARM VA	3.06%	2.75%	-0.19%

Today’s Average Rates for Jumbo Loans

Program	Interest Rate	APR	1 Wk Change
30-Year Fixed Jumbo	3.22%	3.27%	0.07%
20-Year Fixed Jumbo	3.29%	3.33%	0.24%
15-Year Fixed Jumbo	2.86%	2.94%	0.06%
10-Year Fixed Jumbo	2.52%	2.6%	0.1%
7/1 ARM Jumbo	2.68%	3.07%	-0.25%
5/1 ARM Jumbo	2.61%	3.06%	-0.09%
3/1 ARM Jumbo	2.14%	2.74%	0%

Source: zillow.com

May 2, 2021

30-Year Fixed Mortgage Rate Falls to New Record Low

As of April 28, the rate borrowers were quoted on Zillow for 30-year fixed mortgages was 2.78%.

Mortgage rates fall despite strong economic data reports.

Additionally, the 15-year fixed mortgage rate was 2.11%, and for 5/1 ARMs, the rate was 2.55%.

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 above illustrates the average 30-year fixed interest rate for the past week. Here’s a comprehensive look at the current mortgage rates for all loan types:

Today’s Average Rates for Conventional Loans

Program	Interest Rate	APR	1 Wk Change
30-Year Fixed	2.84%	2.9%	-0.05%
20-Year Fixed	2.72%	2.79%	-0.04%
15-Year Fixed	2.13%	2.21%	-0.03%
10-Year Fixed	2.02%	2.14%	-0.12%
7/1 ARM	2.65%	3.25%	-0.1%
5/1 ARM	2.49%	3.19%	0.02%
3/1 ARM	0%	0%	0%

A 30-Year Fixed loan of $300,000 at 2.84% APR with a $75,000 down payment will have a monthly payment of $1,239. A 20-Year Fixed loan of $300,000 at 2.72% APR with a $75,000 down payment will have a monthly payment of $1,621. A 15-Year Fixed loan of $300,000 at 2.13% APR with a $75,000 down payment will have a monthly payment of $1,948. A 10-Year Fixed loan of $300,000 at 2.02% APR with a $75,000 down payment will have a monthly payment of $2,762. A 7/1 ARM loan of $300,000 at 2.65% APR with a $75,000 down payment will have a monthly payment of $1,208. A 5/1 ARM loan of $300,000 at 2.49% APR with a $75,000 down payment will have a monthly payment of $1,183. A 3/1 ARM loan of $0 at 0% APR with a $0 down payment will have a monthly payment of $0. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Today’s Average Rates for Government Loans

Program	Interest Rate	APR	1 Wk Change
30-Year Fixed FHA	2.33%	2.99%	0.53%
30-Year Fixed VA	2.6%	2.89%	-0.21%
15-Year Fixed FHA	2.06%	2.84%	-0.06%
15-Year Fixed VA	2.62%	3.13%	0%
5/1 ARM FHA	2.69%	3%	-0.14%
5/1 ARM VA	2.35%	2.45%	0.09%

A 30-Year Fixed FHA loan of $300,000 at 2.33% APR with a $75,000 down payment will have a monthly payment of $1,158. A 30-Year Fixed VA loan of $300,000 at 2.6% APR with a $75,000 down payment will have a monthly payment of $1,200. A 15-Year Fixed FHA loan of $300,000 at 2.06% APR with a $75,000 down payment will have a monthly payment of $1,939. A 15-Year Fixed VA loan of $300,000 at 2.62% APR with a $75,000 down payment will have a monthly payment of $2,017. A 5/1 ARM FHA loan of $300,000 at 2.69% APR with a $75,000 down payment will have a monthly payment of $1,214. A 5/1 ARM VA loan of $300,000 at 2.35% APR with a $75,000 down payment will have a monthly payment of $1,162. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Today’s Average Rates for Jumbo Loans

Program	Interest Rate	APR	1 Wk Change
30-Year Fixed Jumbo	3.27%	3.32%	-0.03%
20-Year Fixed Jumbo	3.71%	3.76%	-0.3%
15-Year Fixed Jumbo	2.86%	2.94%	-0.06%
10-Year Fixed Jumbo	2.63%	2.7%	0%
7/1 ARM Jumbo	2.59%	2.81%	0.04%
5/1 ARM Jumbo	2.39%	2.73%	0.19%
3/1 ARM Jumbo	2.14%	2.74%	0%

A 30-Year Fixed Jumbo loan of $600,000 at 3.27% APR with a $150,000 down payment will have a monthly payment of $2,618. A 20-Year Fixed Jumbo loan of $600,000 at 3.71% APR with a $150,000 down payment will have a monthly payment of $3,545. A 15-Year Fixed Jumbo loan of $600,000 at 2.86% APR with a $150,000 down payment will have a monthly payment of $4,101. A 10-Year Fixed Jumbo loan of $600,000 at 2.63% APR with a $150,000 down payment will have a monthly payment of $5,690. A 7/1 ARM Jumbo loan of $600,000 at 2.59% APR with a $150,000 down payment will have a monthly payment of $2,400. A 5/1 ARM Jumbo loan of $600,000 at 2.39% APR with a $150,000 down payment will have a monthly payment of $2,336. A 3/1 ARM Jumbo loan of $600,000 at 2.14% APR with a $150,000 down payment will have a monthly payment of $2,259. All monthly payments displayed assume a maximum Loan to Value (LTV) of 80% and 740 credit score, and do not include amount for taxes and insurance. The actual monthly payment may be greater.

Source: zillow.com

April 21, 2021

Mortgage Rates Expected to Stay Below Five Percent Through Early 2012

Last updated on November 30th, 2011

below

Here’s some good news if you’re looking to buy or refinance in the near future.

Mortgage rates, specifically 30-year fixed mortgage rates, are expected to stay below five percent through to next year, according to mortgage financier Fannie Mae.

The 30-year fixed mortgage rate averaged 4.80 percent in the first quarter of 2011, 4.70 percent in the second quarter, and is expected to remain unchanged in the third quarter before rising back to 4.80 percent in the fourth quarter.

In 2012, it’s expected to rise to 4.90 percent in the first quarter, 5.00 percent in the second quarter, 5.10 percent in the third quarter, and you guessed it, 5.20 percent in the fourth quarter.

So maybe there’s not that much of a rush after all…

“With a downgrade of the outlook for economic growth and the unemployment rate, as well as an improving inflation expectation, we now expect the Fed to postpone hiking the Fed funds rate until the second half of 2012, instead of earlier in that year,” wrote Doug Duncan and Orawin T. Velz, in a market analysis released today.

“Long-term rates are projected to rise only modestly, with mortgage rates remaining below 5 percent through early 2012.”

In other words, continued bad news is keeping mortgage rates at bay, and with home prices still under a lot of pressure from swelling inventory, it could be wise to take your time.

The pair also lowered their projected purchase-money mortgage origination volume “modestly” and revised refinance loan origination volume “somewhat higher” for the current quarter.

For 2011, total mortgage origination volume is expected to decline to $1.07 trillion from an estimated $1.51 trillion in 2010, with a refinance share of 53 percent.

Tip: What mortgage rate can I expect?

About the Author: Colin Robertson

Before creating this blog, Colin worked as an account executive for a wholesale mortgage lender in Los Angeles. He has been writing passionately about mortgages for 15 years.

Source: thetruthaboutmortgage.com

April 20, 2021

Chase Mortgage Refinance Rates Intentionally Inflated?

Last updated on March 11th, 2018

inflated

Those looking for a mortgage refinance may get a surprise if they bank with Chase.

The NYC-based bank and mortgage lender is currently advertising mortgage rates well above the national average.

The WSJ first reported on the “issue,” speculating that Chase is trying to pump the brakes on new loan origination because they’re “flooded with demand.”

The way they see if, if they raise their advertised fixed rates, borrowers may go elsewhere, thereby not disrupting their capacity constraints. Of course, it’s a dangerous game to play if and when demand slows.

For example, today’s refinance rates for a 30-year fixed are set at 5.00%, while a 15-year fixed is going for 4.375%.

The 7/1 adjustable-rate mortgage is pricing at 3.000%, while the 5/1 ARM is coming in at 2.625%.

Chase’s Refinance Rates

chase refinance rates

These compare to rates of 4.375% for a 30-year, 3.375% for a 15-year, and 2.625% for a 5-year ARM seen over at top mortgage lender Wells Fargo.

wells fargo rates

That’s right, the 15-year fixed is somehow pricing an entire percentage point higher at Chase, while the 30-year is more than a half point higher. Hmm…

And Wells Fargo mortgage rates aren’t necessarily the lowest out there either, and their interest rates on FHA mortgages are oddly high, so this just illustrates the strangeness of it all.

Perhaps Chase doesn’t have the manpower to originate, underwrite, and process all those would-be loans. For example, they may have enough mortgage bankers but not enough underwriters.

Maybe they’re focusing more on loss mitigation, including loan modifications and foreclosure decisioning? Or simply putting more time into their credit card and savings account businesses, as opposed to Chase mortgages, who knows?

A similar situation unfolded at Wells Fargo back in 2009 when the company said it couldn’t lower mortgage rates as much as it would like due to a high decline rate and lack of available staff.

Interestingly, Chase’s purchase-money mortgage rates are a completely different story.

Chase’s Purchase Rates

purchase rates

You can get a 30-year fixed purchase mortgage for 4.375%, a 15-year for 3.50%, or a 5/1 ARM for 2.25%.

Their ARM rates are actually beating Wells Fargo’s handily, but only if you’re looking for a purchase mortgage.

[Why are mortgage rates different?]

And as we all know, nobody is looking to purchase a home in this market, despite those rock-bottom rates. So that could yet another move to deter new business.

In fact, the Mortgage Bankers Association reported today that purchase demand hit its lowest point since 1996, so mortgages for home purchasing are clearly not highly sought-after.

Yep, housing demand is at its lowest point in 15 years, at the exact same time interest rates are at historic lows. Makes you wonder if buying a home is a good move at the moment, right?

And existing homeowners have seen their home equity get zapped, making a traditional refinance mortgage increasingly difficult to qualify for.

This is unfortunate, seeing that many borrowers could benefit from a lower monthly mortgage payment at the moment.

The moral of the story here is to shop around for your mortgage. If you want the best mortgage rate, don’t just get a single quote from the bank you have your checking account with.

Gather mortgage quotes online (they’re free you know), speak with a few national banks, ask a friend for a mortgage broker reference, and check out some mortgage rate tables to see what a difference the new rate will make versus your current mortgage.

Otherwise you could wind up with an astronomically high mortgage rate, simply because you didn’t know any better.

Read more: What mortgage rate can I expect?

(photo: mae.noelle)

About the Author: Colin Robertson

Before creating this blog, Colin worked as an account executive for a wholesale mortgage lender in Los Angeles. He has been writing passionately about mortgages for 15 years.

Source: thetruthaboutmortgage.com

April 16, 2021

Will Low Mortgage Rates Hurt Home Sales?

Last week, I argued that the super low mortgage rates could actually be contributing to strategic defaults.

The general idea being that the current low mortgage rates today make it even less desirable to hold a “high-rate” mortgage from the past.

The only positive from this assumption is that homeowners in this position may buy a new home and bail on the old one.

That’s a positive for them, minus the credit score hit, but a negative for the housing market and mortgage lenders (another foreclosure, more overpriced inventory that is difficult to unload).

And now it has occurred to me that the promise of low mortgage rates for the foreseeable future may have the unintended consequence of hurting home sales, at least in the near term.

Only 33% of Americans See Mortgage Rates Rising

You see, a new poll from mortgage financier Fannie Mae revealed that just 33 percent of consumers expect mortgage rates to rise in the next 12 months.

That figure is down from 45 percent a month ago, and is the lowest number Fannie has recorded since their monthly tracking began.

At first glance, it sounds like great news. Mortgage rates are going to stay at or near their record lows for longer than we thought.

Low mortgage payments for everyone who decides to dive in! Can’t argue with that.

But wait, why isn’t anyone buying a home? Well, if mortgage rates aren’t going anywhere fast, why not simply take a “wait-and-see” approach.

Kick back, see how the economic uncertainty plays out, watch for more home price declines, and buy next year instead.

You see, Americans also expect home prices to decline further. On average, they see a 1.1 percent decline over the next 12 months, which is the highest expected decline to date in the survey.

And only 18 percent believe home prices will increase over the next year, the lowest number reported to date.

So it’s a bit of a dilemma. If home prices are expected to keep slipping, and mortgage rates are forecast to hold steady, why buy now if you don’t have to?

[Home prices vs. mortgage rates]

Might as well just rent a little bit longer (or hang out in your parent’s basement) before making a move, especially since a lot of homeowners are pricing their homes higher as a result of the insanely low mortgage rates.

Of course, it’s still a relatively attractive time to buy as a first-time home buyer. And trying to time the bottom of the market is a pretty trick endeavor, if not impossible.

But with the traditionally slower portion of the home buying season ahead of us, holding out may lead to a discount over today’s prices.

Read more: Should you buy a house now or wait?

About the Author: Colin Robertson

Before creating this blog, Colin worked as an account executive for a wholesale mortgage lender in Los Angeles. He has been writing passionately about mortgages for 15 years.

Source: thetruthaboutmortgage.com

April 14, 2021

Proposed Bill Lowers FHA Costs for Educated First-Time Buyers

Last updated on March 20th, 2014

A new bill being floated by Representative Karen Bass (D-Calif.) aims to lower the costs of obtaining an FHA loan, which have surged in recent months.

Back in April, the FHA’s upfront mortgage insurance premium increased from 1% to 1.75%. On a $200,000 loan, we’re talking about an increase of $1,500, which certainly isn’t incidental.

The change was implemented to bolster the FHA’s capital reserves, which were drained as a result of the ongoing mortgage crisis.

But clearly this has made FHA loans a lot less attractive to first-time homebuyers, many of which rely on the agency’s signature low-down payment loan program, which requires just 3.5% down.

Enter the Homeownership Preservation Education (HOPE) Act

To offset some of these new costs, Bass has proposed new legislation, namely, the “Homeownership Preservation Education (HOPE) Act.”

In short, it provides a 0.25% reduction on the FHA upfront mortgage insurance premium for first-time homebuyers who complete a HUD-approved housing counseling course.

On that same $200,000 loan referenced earlier, a borrower would save $500 in closing costs, making homeownership more attainable and a little less painful.

The general thinking behind the bill is that more educated homeowners default less often, which reduces foreclosures and losses for the FHA.

As a result, these types of buyers should be able to catch a break on the costly upfront mortgage insurance premium.

While it may seem minimal, every little bit helps because purchasing a home can deplete your assets very quickly.

Look at Mortgage Alternatives

While this bill is certainly well intentioned, first-time homebuyers should also consider other loan options, such as conventional loans.

Though you generally have to come up with 5% down, you won’t have to deal with the pesky FHA upfront mortgage insurance premium, which is now ridiculously high.

Or look at programs such as Fannie Mae Homepath, which only require a 3% down payment and NO mortgage insurance.

If possible, you may also want to consider getting a gift for a larger down payment, that way you can avoid mortgage insurance altogether.

And with a loan-to-value ratio south of 80%, you’ll also enjoy a lower mortgage rate, which will decrease your mortgage payment and increase your affordability.

So along with the HUD-approved homeowner education course, educate yourself on all your loan options well before applying for a loan.

Also be sure to take the time to review your credit report to ensure there are not any errors holding you back from securing a lower rate.

Putting in the time to do some housecleaning before applying for a mortgage is probably the best way to save money.

By the way, beginning next week, the FHA is cutting mortgage insurance premiums for streamline refinances., which should be a godsend to scores of underwater homeowners.

Read more: Which mortgage is right for me?

(photo: cdsessums)

About the Author: Colin Robertson

Before creating this blog, Colin worked as an account executive for a wholesale mortgage lender in Los Angeles. He has been writing passionately about mortgages for 15 years.

Source: thetruthaboutmortgage.com

April 14, 2021

Mass Mortgage Refinancing Plan: Obamaâs Ace In the Hole

Last updated on January 25th, 2018

We’ve heard talk of mass refinancing plans for years now, but nothing has quite delivered.

Sure, the Home Affordable Refinance Program (HARP) was recently expanded to allow just about any homeowner to refinance, regardless of negative equity issues.

But since it was announced in late October, I haven’t heard too much about it. Perhaps because it’s voluntary for mortgage lenders and still comes with cumbersome underwriting requirements?

Now there’s word of a “true mass refinance program,” one that allows pretty much anyone to refinance to today’s super low mortgage rates with few, if any restrictions.

A blog post written by James Pethokoukis that appeared on the American Enterprise Institute website yesterday is grabbing some serious headlines at the moment regarding the supposed plan.

In short, it suggests that Obama is looking to replace the current FHFA director with one of his own, which will allow the President to implement such a program. Just in time for election season too (not that I want to get political about this).

And because the FHFA oversees both Fannie Mae and Freddie Mac, anyone with a mortgage guaranteed by the pair, which is most homeowners, will be able to participate.

How the Mass Mortgage Refinancing Plan Would Work

Apparently it would be modeled after a plan originally thought up by Columbia University economists Glenn Hubbard and Christopher Mayer.

Every homeowner with a Fannie/Freddie backed mortgage would be eligible to refinance their existing first mortgage to a fixed rate of 4% or less.

The only requirement would be that the homeowner is current on their mortgage, or that they become so for a minimum of three months.

Even those with FHA loans and VA loans would be eligible, though interest rates would be higher.

No other qualification criteria would be used – no appraisal requirement, no income verification, no asset documents, LTV limits, etc.

Homeowners would get the option of refinancing into a 30-year fixed or a 15-year fixed.

But only first mortgages can be refinanced, so any second mortgages would need to be resubordinated.

Why It Works

Fannie and Freddie would get higher guarantee fees for implementing the plan, and loan servicers would receive the right to originate/service the mortgages without being responsible for “reps and warranties” violations of past servicers.

Banks and mortgage lenders would be able to refinance the mortgages quickly and cheaply thanks to the lack of underwriting requirements.

Private mortgage insurers could continue to insure the mortgages, and with lower monthly payments the mortgages would be deemed safer.

Roughly 25 million homeowners would benefit from the program in the form of lower monthly mortgage payments, with estimated annual savings of $2,800 per homeowner, or $70 billion in aggregate reduced housing costs.

These lower mortgage payments would also serve to stabilize the housing market and reduce the risk of future defaults.

It could also motivate homeowners on the brink to stay current in order to participate, unlike many loan modification programs that only serve those who fall behind on payments.

This could effectively push home prices higher, easing home equity concerns for those “on the fence” about staying or going.

Additionally, taxpayers would stand to benefit because Fannie and Freddie would reduce their losses and lower mortgage payments would mean reduced mortgage interest deductions.

The only “loser” would be mortgage bondholders, which the economists argue have already benefited tremendously from government actions taken during the mortgage crisis.

Additionally, thanks to current roadblocks, the relatively slow rate of refinancing allowed these bondholders to benefit more than they would have historically.

So there you have it. A possible mass refinance program with very few constraints. Even ineligible borrowers would “benefit” indirectly if the housing market improved as a result.

Not that I’m sold on it. There are still a ton of question marks, namely those who can’t afford even a reduced housing payment, those already in foreclosure, the excess housing inventory, the impact of future mortgage rates, etc, etc.

Regardless, it’s clear housing policy will play a major role in the upcoming election.

(photo: KE Design)

About the Author: Colin Robertson

Before creating this blog, Colin worked as an account executive for a wholesale mortgage lender in Los Angeles. He has been writing passionately about mortgages for 15 years.

Source: thetruthaboutmortgage.com