According to Freddie Mac’s weekly mortgage rate survey of more than one hundred banks, the average 30-year mortgage rates dropped one basis points (0.01%) last week to reach 4.12%; and the average 15-year mortgage rates dropped three basis points (0.03%).
Mortgage interest rates are near a 14-month low. Home buyers have benefitted from low rates all year. Now, refinancing households are benefitting, too.
30-Year Mortgage Rates Average 4.12%
30-year mortgage rates moved lower again last week. Nationwide, the average conforming 30-year fixed rate mortgage rate fell 0.01 percentage points to 4.12%. The rate is available to “prime” borrowers willing to pay an accompanying 0.6 discount points at closing.
Discount points are a one-time loan cost, where one discount point carries a cost equal to one percent of your first mortgage loan size amount.
For example, 1 discount point on a loan Miami, Florida at the 2014 conforming loan limit of $417,000 would require $4,170 to be paid at closing.
Discount points can be paid as cash or, for a mortgage refinance, they can be added to your loan size.
Discount points are typically tax-deductible.
15-year mortgage rates also dropped last week, shedding 0.03 percentage points to fall to 3.23% nationwide. Locking a 15-year mortgage rate at 3.23% costs 0.7 discount points on average.
Note that Freddie Mac’s weekly mortgage interest rate survey covers conforming loans only. FHA mortgage rates and VA mortgage rates are not included in the report; nor are mortgage rates for USDA loans.
Last week, however, similar to their conventional loan counterpart, mortgage rates for FHA, VA and USDA loans improved. Rates are now near 14-month lows and buyer purchasing power is up close to 8% from the start of the year.
It’s an excellent time to compare today’s mortgage rates. Pricing is as good as it’s been all year.
Mortgage Rates In August
Last month, mortgage rates were mostly unchanged. When July began, 30-year mortgage rates averaged 4.12%, and they averaged 4.12% when July ended.
On average, mortgage rates moved just 1.6 basis points per week throughout July, which marks the smallest weekly moves in more than five years. Rates were uncommonly stable last month, which made for simple shopping.
In August, the trend may end — today’s market is wound tight like a coil and sits ready to spring.
There are a number of factors which could affect this month’s mortgage rates.