According to the weekly Primary Mortgage Market Survey from Freddie Mac, mortgage rates took a jump for the third consecutive week, and who knows if rates will fall again to the levels of three weeks ago.
Now, I have good news and bad news.
The good news is if you locked in to a mortgage or refinanced within the past month, you seized the day and took advantage of some of the lowest rates you will probably ever see.
The bad news is if you waited and felt that rates were going to drop further while totally ignoring my advice for the past year, you could have missed out on some unbelievably low mortgage rates.
Clearly rates could fall at any time again, but you would be taking a major risk by waiting for mortgage rates to drop again.
Let’s take a look at this week’s numbers.
30-year fixed-rate mortgages jumped from last week’s 3.59% with 0.6 points to 3.62% with 0.6 points. You would have to track backward a month to find a rate this high when 30-year fixed-rate mortgages averaged 3.62% the week ending in July 5, 2012. Last year at this time, 30-year fixed-rate mortgages averaged 4.15%.
15-year fixed-rate mortgages jumped slightly to 2.84% with 0.6 points from last week’s 2.83% with 0.6 points. It seems as if 15-year fixed-rate mortgages have settled comfortably lower than 3.00% seeing that the average has been lower than 3.00% since May 24, 2012. Last year at this time, 15-year fixed-rate mortgages averaged 3.36%.
5/1-year ARMs fell to 2.76% with 0.6 points from last week’s 2.77% with 0.6 points, while 1-year ARMs jumped to 2.69% with 0.4 points from last week’s 2.65% with 0.4 points.
Last year at this time, 5/1-year ARMs and 1-year ARMs averaged 3.08% and 2.86%, respectively.
So what did my dude Frank Nothaft, vice president and chief economist from Freddie Mac, have to say this week? Surely he had some stellar insight as always.
He explained, “The latest economic indicators point toward low inflation but gradually stronger economic activity which placed further upward pressure on long-term Treasury yields and, in turn, fixed mortgage rates. For example, inflation remains in check with 12-month growth in the core consumer price index falling for a second month to 2.1 percent in July. At the same time, industrial production rose 0.6 percent in July compared to a 0.1 percent increase in June and retail sales jumped 0.8 percent in July from a 0.7 percent decline in June.”
This sounds like the exact same thing that I wrote in my journal.
Moral of this story? Rates could be heading in a direction you don’t want them to head in if you want to refinance or get a new mortgage. The time is now. Call us today!