Is it time to refinance?
Mortgage rates dropped big last week, according to Freddie Mac’s weekly Primary Mortgage Market Survey (PMMS). The average conforming 30-year fixed rate mortgage rate fell 0.18 percentage points last week to 4.32%, on average, marking the biggest one-week mortgage rate improvement since June 2009.
The 30-year fixed has moved to a 10-week low.
30-Year Fixed Rate Mortgage Rate : 4,32%
Each week, government-backed Freddie Mac conducts a mortgage rate survey of 125 banks nationwide. The survey asks banks reply with their “going” mortgage rate for a prime mortgage borrower, including the number of accompanying discount points required to lock that rate.
A prime borrower, as defined by Freddie Mac, is one with ample home equity or downpayment, high credit scores, and documented income which meets or exceeds mortgage underwriting standards. HARP mortgages are not considered “prime”, nor are VA loans and FHA loans which are backed by the Department of Veterans Affairs and the Federal Housing Administration, respectively.
Freddie Mac’s weekly survey shows the average 30-year fixed rate mortgage rate at 4.32%. This is the lowest that mortgage rates have been since late-July.
In order to get a 4.32% mortgage rate, borrowers should expect to pay 0.7 discount points, on average.
Paying 0.7 discount points will add $700 in closing costs for every $100,000 borrowed. Loans in high-cost areas, therefore, a classification which includes Loudoun County, Virginia; Potomac, Maryland; and Orange County, California, which are made at the maximum $625,500 loan size, would carry a one-time cost of $4,379.
For some mortgage borrowers, discount points are tax-deductible.
Lowest Mortgage Rates In California, Washington
Mortgage rates fell last week, but fell unevenly from region-to-region. Depending on where you live, you’re seeing different mortgage rates from your lender.
Last week’s average mortgage rates by region were :
- Northeast Region : 4.36% with 0.7 discount points
- West Region : 4.27% with 0.8 discount points
- Southeast Region : 4.33% with 0.7 discount points
- North Central Region : 4.33% with 0.6 discount points
- Southwest Region : 4.37% with 0.7 discount points
This breakdown indicates that today’s cheapest “rate-and-fee” combinations are being offered to buyers and refinancing households in the North Central Region (Illinois, Wisconsin, Minnesota Michigan, and Ohio), and in the West Region (California, Oregon, Washington, Nevada and Arizona).
By contrast, the most “expensive” mortgages are going to applicants the Southwest Region, an area which includes New Mexico and Oklahoma.
Lock Your Mortgage Rate Today
Freddie Mac published the 30-year fixed rate mortgage rate at 4.32% this week. That doesn’t mean everyone will get this rate (or even want it). Loans without discount points, for example, are linked to higher mortgage rates.
In addition, buyers using a 3 percent downpayment program and investors with more than 4 properties financed can expect a higher rate, too. As compared to last week, however, for all loan types, mortgage rates are much, much lower.
See today’s mortgage rates now. Getting a rate is fast, free, and there’s no obligation whatsoever.