Mortgage Rates Today, Thursday, Oct. 20: Down Slightly; New Housing Permits on the Rise

Thirty-year fixed, 15-year fixed and 5/1 ARM loan rates saw subtle decreases across the board on Thursday, according to a NerdWallet survey of mortgage rates published by national lenders this morning.

“The 30-year fixed-rate mortgage moved a solid five basis points [0.05%] to 3.52% while the 10-year Treasury yield remained relatively flat,” Sean Becketti, chief economist for Freddie Mac, said in a news release regarding this week’s average rates. “This is the first week in over four months that rates have risen above 3.50%. This month, mortgage rates seem to be catching up to Treasury yields and returning to pre-Brexit levels.”

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Mortgage Rates Today,
Thursday, Oct. 20

(Change from 10/19)
30-year fixed: 3.70% APR (-0.03)
15-year fixed: 3.10% APR (-0.02)
5/1 ARM: 3.59% APR (-0.01)

September new construction report hints at possible growth

In a news release on Wednesday, Jonathan Smoke, chief economist of Realtor.com, said that a September decrease in housing starts — when construction on a new home begins — isn’t necessarily cause to worry. An increase in permits last month indicates growth in the near future.

“The seasonally adjusted rate of permitting in September was up 6 percent over the rate in August,” Smoke said. “That blew through analysts’ expectations of a 2 percent increase. Unlike with starts, that monthly change was statistically significant.” The seasonally adjusted rate of starts was down 12 percent compared to August.

Smoke said that last month’s seasonally adjusted rate of permits was the highest for a September since 2007.

“What we are seeing now in starts is the result of a troubling negative trend in permits that started last December and has been especially significant in multifamily. September was the first month this year where we’ve seen a positive increase in the pace of multifamily permits.”

If new construction increases in the coming months, that would mean higher inventories in homes for sale and units for rent, which can lower home costs and rental prices.

Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published APR with the lowest points for each loan term offered by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

Michael Burge is a staff writer at NerdWallet, a personal finance website. 

The article Mortgage Rates Today, Thursday, Oct. 20: Down Slightly; New Housing Permits on the Rise originally appeared on NerdWallet.

Mortgage Rates Today, Thursday, Oct. 13: Holding Recent Highs; Foreclosure Crisis Finally Ends

Thirty-year fixed mortgage rates were unchanged, 15-year fixed rates were higher and 5/1 ARM rates fell slightly Thursday, according to a NerdWallet survey of mortgage rates published by national lenders this morning.

“This week the 10-year Treasury yield continued its climb as an increasing number of financial market participants foresee a December rate hike after a series of positive economic data releases,” Sean Becketti, chief economist for Freddie Mac, said in a news release. “The 30-year fixed-rate mortgage moved up 5 basis points [0.05%] to 3.47% in this week’s survey, the first increase in one month.”

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Mortgage Rates Today,
Thursday, Oct. 13

(Change from 10/12)
30-year fixed: 3.71% APR (NC)
15-year fixed: 3.11% APR (+0.02)
5/1 ARM: 3.62% APR (-0.01)

Foreclosure crisis ends

After years of steady improvement, the national home foreclosure crisis has finally ended. Foreclosure filings in September were down 13% from the previous month and were 24% lower from one year ago. It is the lowest level of foreclosure activity since December 2005, according to Attom Data Solutions.

“While we’ve known that the national foreclosure problem has been dying a long, slow death for quite some time, the final nail in the coffin of the foreclosure crisis is the year-over-year decrease in the average foreclosure timeline nationwide that we saw in Q3 2016 — the first time that’s happened since we began tracking foreclosure timelines in Q1 2007,” Daren Blomquist, senior vice president at ATTOM Data Solutions, said in an analysis.

Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published APR with the lowest points for each loan term offered by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

Hal Bundrick is a staff writer at NerdWallet, a personal finance website. 

The article Mortgage Rates Today, Thursday, Oct. 13: Holding Recent Highs; Foreclosure Crisis Finally Ends originally appeared on NerdWallet.

Mortgage Rates Today, Tuesday, Oct. 4: Moving Up, Mortgages Paid on Time

Thirty-year and 5/1 ARM loans rose, while 15-year fixed loans remained the same, according to a NerdWallet survey of mortgage rates published by national lenders Tuesday.

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Mortgage Rates Today,
Tuesday, Oct. 4

(Change from 10/3)
30-year fixed: 3.61% APR (+0.01)
15-year fixed: 3.02% APR (NC)
5/1 ARM: 3.54% APR (+0.03)

More borrowers paying mortgages on time

Homeowners, pat yourselves on the back, because you’re doing a great job. New data show that 94.7% of mortgages were current and performing at the end of second quarter 2016, compared with 93.8% a year earlier, according to the Office of the Comptroller of the Currency’s quarterly report on mortgages.

The OCC Mortgage Metrics Report also showed that foreclosures were down, which mirrors recent CoreLogic data. The OCC’s survey showed that reporting mortgage servicers initiated 48,732 foreclosures during Q2 this year, down 31.1% from 2015.

Data come from seven national banks with considerable mortgage-servicing portfolios: Bank of America, Citibank, HSBC, JPMorgan Chase, PNC, U.S. Bank and Wells Fargo.

Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published APR with the lowest points for each loan term offered by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

Deborah Kearns is a staff writer at NerdWallet, a personal finance website. 

The article Mortgage Rates Today, Tuesday, Oct. 4: Moving Up, Mortgages Paid on Time originally appeared on NerdWallet.

Mortgage Rates Today, Sept. 28: Mixed Bag, Cash Sales Drop

Thirty-year mortgage rates inched up, while 15-year fixed and 5/1 ARM rates fell even lower, according to a NerdWallet survey of mortgage rates published by national lenders Wednesday.

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Mortgage Rates Today,
Tuesday, Sept. 28

(Change from 9/27)
30-year fixed: 3.58% APR (+0.01)
15-year fixed: 2.98% APR (-0.02)
5/1 ARM: 3.41% APR (-0.05)

Cash sales hit lowest level since housing crisis began

It looks like investor purchases are taking a back seat in the housing market. Cash sales accounted for 29.3% of total home sales in June 2016, down 2.5 percentage points year over year, according to CoreLogic.

CoreLogic reported that cash sales peaked in January 2011, when cash transactions accounted for nearly half (46.6%) of total home sales in the U.S. During that time, housing markets across the country were just starting a slow but steady recovery following several years of depressed values and a glut of distressed properties on the market.

June 2016 marks the first time that cash sales accounted for under 30% of home purchases since late 2007. Before the downturn, the cash sales share of total home sales averaged approximately 25%. If this downward trend in cash sales continues at the latest rate, the share should hit 25% by mid-2018, wrote Molly Boesel, senior economist at CoreLogic, in a blog post.

Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published APR with the lowest points for each loan term offered by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

Deborah Kearns is a staff writer at NerdWallet, a personal finance website. 

The article Mortgage Rates Today, Sept. 28: Mixed Bag, Cash Sales Drop originally appeared onNerdWallet.

Mortgage Rates Today, Tuesday, Sept. 20: Waiting on Central Banks

Thirty-year fixed mortgage rates were unchanged, while 15-year fixed home loans were up a tick and 5/1 ARM rates were higher Tuesday, according to a NerdWallet survey of mortgage ratespublished by national lenders.

Mortgage rates have wavered only slightly for a week as banks have simply fine-tuned their existing prices.

NerdWallet is a free tool to find you the best credit cards, cd rates, savings, checking accounts, scholarships, healthcare and airlines. Start here to maximize your rewards or minimize your interest rates.
Hal M. Bundrick, CFP
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Mortgage Rates Today, Tuesday, Sept. 20

(Change from 9/19)

  • 30-year fixed: 3.67% APR (NC)
  • 15-year fixed: 3.09% APR (+0.01)
  • 5/1 ARM: 3.57% APR (+0.03)

Central banks take center stage

Interest rate watchers are keeping an eye on the Bank of Japan and the U.S. Federal Reserve’s Federal Open Market Committee. The decisions of these two central banks Wednesday could provide the next impetus for interest rates to move.

“Keep in mind that Wednesday afternoon brings the FOMC announcement, where the Fed releases its updated policy statement,” Matthew Graham, chief operating officer of Mortgage News Daily, wrote in an analysis late Monday. “Although markets and rates can go either way in response to these events, big, negative reactions tend to happen faster and more abruptly than big, positive reactions.”

Graham said the bond market will likely see significant volatility, regardless of the announced monetary policy decisions.

“In the biggest of pictures, ‘global growth concerns’ remain the driving force behind the long-term trend toward lower rates,” Graham added.

Scott Anderson, chief economist with Bank of the West, says that while the Fed has been sending signals of a short-term interest rate hike, a weaker than expected August payroll report and continued weak economic and inflation data may have pushed back the Fed’s timeline.

Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published APR with the lowest points for each loan term offered by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

Hal Bundrick is a staff writer at NerdWallet, a personal finance website. 

The article Mortgage Rates Today, Tuesday, Sept. 20: Waiting on Central Banks originally appeared on NerdWallet.

Mortgage Rates Today, Thursday, Sept. 15: Highest Since June

Thirty-year fixed mortgage rates were unchanged, while 15-year fixed and 5/1 ARM rates were modestly lower Thursday, according to a NerdWallet survey of mortgage rates published by national lenders.

Average weekly rates on 30-year fixed-rate home loans are at their highest levels since June 24, according to the NerdWallet Mortgage Rate Index.

NerdWallet is a free tool to find you the best credit cards, cd rates, savings, checking accounts, scholarships, healthcare and airlines. Start here to maximize your rewards or minimize your interest rates.
Hal M. Bundrick, CFP
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Mortgage Rates Today, Wednesday, Sept. 15

(Change from 9/14)

  • 30-year fixed: 3.69% APR (NC)
  • 15-year fixed: 3.09% APR (-0.01)
  • 5/1 ARM: 3.54% APR (-0.02)

Mortgage rates sharply higher for the week

Reacting to overseas economic concerns and speculation of a hike in interest rates here at home, mortgage rates have seen increased volatility over the past week. The result: Rates on the most popular terms are sharply higher from one week ago.

“The 10-year Treasury yield rose 18 basis points to 1.73%, its highest level since Brexit,” Sean Becketti, chief economist for Freddie Mac, said in a news release. Brexit was the British referendum that resulted in a vote to leave the European Union. “The 30-year fixed-rate mortgage followed suit, rising 6 basis points to 3.50% this week. This is the first week since June that mortgage rates were above 3.48%, snapping an 11-week trend.”

The Federal Reserve Open Market Committee meets next week and announces its decision regarding short-term interest rates Wednesday. Many economists expect the FOMC to delay issuing a rate hike until later in the year, most likely to December’s meeting. Most analysts expect a quarter point (0.25%) increase in interest rates.
Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published APR with the lowest points for each loan term offered by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

Hal Bundrick is a staff writer at NerdWallet, a personal finance website. 

The article Mortgage Rates Today, Thursday, Sept. 15: Highest Since June originally appeared onNerdWallet.

Mortgage Rates Today, Thursday, Sept. 8: Up From July Lows

Thirty-year fixed mortgage rates are up, 15-year home loan rates are lower and 5/1 ARM rates are unchanged Thursday, according to a NerdWallet survey of mortgage rates published by national lenders this morning.

A Federal Reserve economic analysis released Wednesday said modest growth through late August is tempering the threat for inflation. That may give the Fed enough reason to delay a hike in short-term interest rates later this month. As a result, mortgage rates may see little movement in the coming weeks.

Mortgage rates lower for the week

Mortgage rates dipped this week after an economic report sparked concerns regarding the nation’s soft service economy, which motivated investors to buy into the bond market. Generally, 30-year fixed mortgage rates are back to where they were in mid-August — but well up from their early-July lows.

“The 30-year fixed-rate mortgage fell 2 basis points to 3.44% this week. As mortgage rates continue to range between 3.41% and 3.48%, many are taking advantage of the historically low rates by refinancing,” Sean Becketti, chief economist for Freddie Mac, said in a news release. “Since the Brexit vote, the refinance share of mortgage activity has remained above 60%.”

The NerdWallet Mortgage Rate Index compiles annual percentage rates — lender interest rates plus fees, the most accurate way for consumers to compare rates. Here are today’s average rates for the most popular loan terms:

Mortgage Rates: Sept. 8, 2016

(Change from 9/7)

30-year fixed: 3.60% APR (+0.02)

15-year fixed: 3.05% APR (-0.02)

5/1 ARM: 3.50% APR (NC)

Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published APR with the lowest points for each loan term offered by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

Hal Bundrick is a staff writer at NerdWallet, a personal finance website. 

The article Mortgage Rates Today, Thursday, Sept. 8: Up From July Lows originally appeared onNerdWallet.

Mortgage Rates Today, Sept. 1: Uptick, Housing Inequality Widens

Thirty-year, 15-year and 5/1 ARM mortgage rates all rose on Thursday, according to a NerdWallet survey of mortgage rates published by national lenders this morning.

The increases, though slight, might mean we’ll see rates heading north from now on. It could be that the honeymoon for rock-bottom mortgage rates is finally over.

Housing inequality gap widens even more

Inequality isn’t just a gender pay or race issue. It’s also glaringly obvious within the U.S. housing market. Over the past 30 years, prices in the 20 priciest housing markets have risen more quickly than prices in the 20 least expensive, according to new research from Trulia. Expensive markets (think San Francisco or Seattle) almost always had more significant price gains compared to less expensive markets like Dayton, Ohio, or Tulsa, Oklahoma.

And the gap has only grown. Trulia reported that the priciest metros were 144% more expensive than the least expensive metros in 1986, but that differential has grown to over 319% today.

The housing-wealth disparity becomes even more stark when looking at homeowners’ return on investment over 30 years. In Rochester, New York, and Wichita, Kansas, the returns have been 85% and 89.9%, respectively, while ROI in San Francisco and San Jose, California, has been a whopping 557.6% and 496.5%. In other words, a homeowner gets an average cash return of approximately $50,000 in Dayton, Ohio — lowest among the survey’s 100 largest metros — compared to nearly $900,000 in San Francisco.

“Both trends suggest that economic convergence — the idea that over time, less expensive markets should ‘catch up’ to more expensive ones — is not taking place,” wrote Trulia Chief Economist Ralph McLaughlin in a blog post titled “Rich City, Poor City: How Housing Supply Drives Regional Inequality.”

McLaughlin said much of the contrast between rich and poor cities (in terms of homeownership) comes down to two main elements: income growth and new housing construction.

The NerdWallet Mortgage Rate Index compiles annual percentage rates — lender interest rates plus fees, the most accurate way for consumers to compare rates. Here are today’s average rates for the most popular loan terms:

Mortgage Rates: Sept. 1, 2016

(Change from 8/31)

30-year fixed: 3.64% APR (+0.01)

15-year fixed: 3.07% APR (+0.01)

5/1 ARM: 3.54% APR (+0.02)

Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published APR with the lowest points for each loan term offered by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

Deborah Kearns is a staff writer at NerdWallet, a personal finance website. 

The article Mortgage Rates Today, Sept. 1: Uptick, Housing Inequality Widens originally appeared on NerdWallet.

Mortgage Rates Today, Thursday, Aug. 25: Rates Steady, Home Inventory Skinny

Thirty-year and 15-year fixed mortgages were unchanged Thursday, while 5/1 ARM home loan rates ticked up, according to a NerdWallet survey of mortgage rates published by national lenders this morning.

The bean counters at the banks must have taken last-minute summer vacations. Rates barely budged today, with most lenders apparently satisfied to keep their pricing locked in. Turn out the lights and forward their mail; home loan rates don’t seem to be going anywhere anytime soon.

Mortgage rates hanging near all-time lows

In fact, mortgage rates have seen little movement in the past week — or the past month, for that matter.

“Treasury yields were little changed from the prior week, and the 30-year fixed-rate mortgage held steady at 3.43% this week,” Sean Becketti, chief economist of Freddie Mac, said in a news release. “This marks the ninth consecutive week that mortgage rates have been below 3.5%. Markets are erring on the side of caution ahead of the second estimate for second-quarter GDP and Fed Chair Janet Yellen’s speech on Friday.”

However, anxious to tap such favorable rates, potential buyers are still facing a limited supply of homes to choose from. While new home sales rose 12% in July, a nine-year high, existing home sales for the same month fell 3%, according to the National Association of Realtors.

“The primary culprit behind the decline in July is the lack of homes on the market. We simply can’t see growth in sales without having enough homes to sell,” Jonathan Smoke, chief economist for Realtor.com, said in a release. “This has been the case for 47 straight months, a situation that has bolstered home prices but made it tough for people to find a home for sale that meets their needs.”

The NerdWallet Mortgage Rate Index compiles annual percentage rates — lender interest rates plus fees, the most accurate way for consumers to compare rates. Here are today’s average rates for the most popular loan terms:

Mortgage Rates: Aug. 25, 2016

(Change from 8/24)

30-year fixed: 3.60% APR (NC)

15-year fixed: 3.05% APR (NC)

5/1 ARM: 3.51% APR (+0.01)
Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published APR with the lowest points for each loan term offered by a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.

Hal Bundrick is a staff writer at NerdWallet, a personal finance website. 

The article Mortgage Rates Today, Thursday, Aug. 25: Rates Steady, Home Inventory Skinnyoriginally appeared on NerdWallet.