Freddie Mac reports mortgage rates at 2015 highs

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Freddie Mac’s Primary Mortgage Market Survey reveals just how dramatically mortgage rates have gone up over the last month. Freddie Mac reports that last week, the 30 year fixed conforming mortgage (loan amount $417,000 or lower) interest rate averaged 4.04% priced with 0.6 points.

Len Kiefer, deputy chief economist, Freddie Mac states:

“Mortgage rates rose above 4 percent for the first time since November 2014 as Treasury yields surged. Markets are responding to strong employment data. In May, the U.S. economy added 280,000 jobs. Moreover, job openings surged to 5.4 million in April, up over 20 percent from a year ago.”

Freddie Mac’s report is based on last week’s data. As I write this post, I’m quoting:

4.125% (apr 4.225%) priced with 0.579 points for a 30 year fixed conforming mortgage based on a sales price of $500,000 with a loan amount of $400,000 with credit scores of 740 or  higher and closing by July 17, 2015 or before. Rates quoted are subject to credit approval and may change at any time.

4 percent is still an extremely low mortgage rates…however, when the last eight months have had rates in the 3’s…4 just doesn’t seem so hot. I remember when mortgage rates dropped to the 5s and sank to the 4s. Really, anything under 6 percent is low. However, when you are qualifed or preapproved for a mortgage based on a rate in the high threes and rates rise, it can be a real issue. Folks who are in the process of shopping for a home or who have not yet locked in their rate, should check in with their mortgage professional to see if the rising rates are impacting their loan approval.

 

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