The Prime Mortgage Market Survey reports that last week, the 30 year fixed averaged 3.92 percent with an average 0.6 point. The week prior, the reported average was 3.97 percent. A drop in rate of 0.05%.
From Freddie Mac’s Chief Economist, Stan Becketti:
“Long-term Treasury yields continue to drop, dragging mortgage rates down with them. Turbulence in overseas financial markets is generating a flight-to-quality which benefits U.S. Treasury securities. In addition, sagging oil prices are capping inflation expectations. The net effect on the 30-year mortgage rate was a 5 basis point drop to 3.92 percent.”
Freddie Mac’s PMMS actually states: “Mortgage Rates Fall Farther”…this is accurate as rates are lower in this week’s market survey compared to the previous week’s PMMS…however, it’s just a tad bit lower. I know I’m splitting hairs, but the word “fall” seems to indicate a bigger drop in rates than what is reported. What I do know is that with rates remaining below 4, it’s an opportunity for home owners to reduce their mortgage payment with a refinance or to lock in a low rate with their home purchase.
As I write this post, 9:00 am on January 14, 2016, I’m quoting:
3.875% priced with 0.750 points for a 30 year fixed rate (apr 3.998%).
Rate quoted above is based on a purchase in the greater Seattle – King County area with a sales price of $500,000, 20% down payment and a conventional loan amount of $400,000. The home buyers have excellent credit with credit scores of 740 or higher and the transaction is closing by February 19, 2016 or sooner.
Rates quoted are subject to credit approval and may change at any time. Payments quoted above do not include property taxes or insurance and are principal and interest only. This is just a small sample of the mortgage rates and programs that I have available. If you would like me to provide you with a mortgage rate quote for your home purchase or refinance on your home located anywhere in Washington state, please click here.