Freddie Mac released the results of its Primary Mortgage Market Survey today showing that fixed mortgage rate averages changed little from the previous week with the 30-year mortgage still hovering around 4 percent.
What was most telling within the survey was the continuous and consistent “spread” between the 15yr fixed and 30yr fixed mortgage rate options.
Historically the range between the 15-vs-30 year rates have been as low as 25 basis points (1/4 point) up to 55 basis points (about a 1/2 point) on average.
Recently that range has widened and we now see a ¾ (75 basis points) or higher spread between those two term options.
What that means to you?
There is now a tremendous incentive to pursue a 15 year fixed mortgage, and banks are aggressively competing to obtain that business.
Approved Funding has exceptional relationships with over 50 funding sources (major banks and boutique investors) which results in the most competitive rates/terms in the industry.
In fact, as of the date of this article, Approved Funding’s 15 year mortgage rates are WELL BELLOW the national average, and we have had borrowers lock in loans close-to and under 3.00% fixed!! (Rates and terms are obviously subject to change in line with market conditions)
Take advantage of these unusually low mortgage rates now!
Details of Freddie Mac weekly Mortgage Market Survey
- 30-year fixed-rate mortgage (FRM) averaged 4.01 percent with an average 0.5 point for the week ending November 13, 2014, down from last week when it averaged 4.02 percent. A year ago at this time, the 30-year FRM averaged 4.35 percent.
- 15-year FRM this week averaged 3.20 percent with an average 0.5 point, down from last week when it averaged 3.21 percent. A year ago at this time, the 15-year FRM averaged 3.35 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.02 percent this week with an average 0.5 point, up from last week when it averaged 2.97 percent. A year ago, the 5-year ARM averaged 3.01 percent.
- 1-year Treasury-indexed ARM averaged 2.43 percent this week with an average 0.4 point, down from last week when it averaged 2.45 percent. At this time last year, the 1-year ARM averaged 2.61 percent.
Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following links for the Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.
“Fixed mortgage rates were slightly down on mixed results from October’s employment report. While the unemployment rate declined to 5.8 percent, nonfarm employment rose by 214,000 jobs, which was below consensus expectations. Net revisions for payroll employment in August and September added 31,000 more jobs to the initial readings.”