Mortgage rates have been moving higher causing some home buyers and rate shoppers a bit of surprise. Mortgage rates have been trending up with hints of QE3 and the Fed’s bond buying program, which has kept mortgage rates at artificial lows, may be wrapping up soon. Freddie Mac reports that the 30 year fixed is at 3.91% when paying 0.7 points and if not points are paid, the rate is 4.09%. Keep in mind that the rates Freddie has posted today are from last week and rates have continued to nudge higher.
Rates are still historically very low. We are higher than the average 30 year rate for 2012, but still lower than all other years dating back to 1971 according to Freddie Mac’s survey.
You can still have a 30 year fixed rate in the 3’s…as long as you’re willing to pay more for it. And in the big picture, rates are still historically very low.
Are mortgage rates in the 3’s gone for the 30 year? Not if you’re willing to pay extra for that rate. If your heart is set on a rate in the 3’s and you don’t want to shell out extra in discount points, you may want to check out the 10/1 ARM or 7/1 ARM depending on what your long term financial goals are with the mortgage and home.
Tomorrow morning, the Job’s Report is scheduled to be released. Should the Jobs report have weaker than expected data, we could see rates improve. On the other hand, if the Jobs Report is stronger than expected, we will most likely see mortgage rates continue their trend higher.
If I can help you with your purchase or refinance mortgage for your home located in Bellevue, Ballard, Bainbridge Island or anywhere in Washington state, please contact me. Click here if I can provide you with a mortgage rate quote.