Mortgage Rates Return To April 2010 Levels

By
Mortgage and Lending with Pacor Mortgage Corp

Mortgage rates (Feb 2010 - Feb 2011)

Mortgage rates are surging.

Over the last 7 days, conventional, 30-year fixed rate mortgage rates have jumped 24 basis points, or 0.24%, according to Freddie Mac's weekly Primary Mortgage Market Survey.

It's the largest 1-week spike in mortgage rates in recent history.

The 30-year fixed rate mortgage now averages 5.05% nationally. This is much, much higher than what we saw last November when mortgage rates were 4.17% and looked headed to the 3s.

That's not the case today. In fact, it's the opposite. 

Mortgage rates have risen quickly and fiercely this year. As of this morning, mortgage rates are higher over 9 consecutive days, marking the longest mortgage rate losing streak in the last 6 years, at least.

Note, however, that when you call your loan officer or bank, you may not be quoted the same 5.05% rate as shown by Freddie Mac. This is because Freddie Mac-reported rates are national averagesAny given mortgage rate may be higher or lower depending on its region. 

As an illustration, look how this week's rates breaks down by area:

  • Northeast : 5.07 with 0.7 points
  • Southeast : 4.99 with 0.9 points
  • North Central : 5.09 with 0.6 points
  • Southeast : 5.06 with 0.6 points
  • West : 5.02 with 0.8 points

In other words, the rate-and-fee combination you'd be offered in your home town of Oak Lawn is different from what you'd be offered if you lived somewhere else. In the Southeast, rates tend to be low and fees tend to be high; in the North Central U.S., it's the opposite.

The good news is that, as a mortgage applicant, you can have your pricing whichever way you prefer. If getting the absolute lowest mortgage rate is what's most important to you, have your loan officer structure your loan as in the "Southeast Style". Or, if you prefer to have as few closing costs as possible and don't mind slightly higher rates, ask for that type of set-up instead.

Either way, consider locking your rate as soon as possible. If rates keep rising, it won't be long before they touch 6 percent.

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Topic:
Mortgage / Finance
Location:
Illinois Cook County Oak Lawn
Groups:
Chicago Area Real Estate BUZZ!
Chicago-Northern Illinois Real Estate
Chicagoland and Northern Illinois Real Estate
NAPERVILLE ILLINOIS REALTORS
Tags:
home affordability
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Rainmaker
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Barb & Sal Dragotta
Macomb, MI
Macomb County Michigan

Kevin....the rates going up is looked upon as a good thing for Housing.  Still quite historically low, but now getting back to the area where owning a Home is a privilege rather than a right.  To me that is a good thing. 

Today's WSJ calls this [rise] a "Headwind for Housing"--where they point to a positive result of a strengthening economy, but also suggest that it could also result at a deterrent to selling.  Personally, I never want to see again, the 'easy,peasy [?] all allowed to have their piece of the Home owner pie'.  Time will tell & who knows what the Egypt Event will bring.
Good to post & you do it well.
Barb

Feb 11, 2011 07:14 AM #1
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Rainmaker
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Kevin Lanham

Chicagoland FHA Expert
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