After 2 months of declines, mortgage rates are now at their lowest level since September with potential to spur spring homebuying. Two months of declining mortgage rates have finally got the attention of homebuyers, with demand for purchase loans jumping 25 percent last week as rates continued to descend toward 6 percent, according to a weekly survey of lenders by the Mortgage Bankers Association.
Mortgage application activity rebounded strongly in the first full week of January, with both refinance and purchase activity increasing by double-digit percentages compared to last week.
Rates have eased in the wake of the Federal Reserve’s Dec. 14 decision to slow the pace of short-term interest rate hikes, and more recent data that suggests inflation may be easing.
For the week ending Jan. 13, the MBA reported average rates for the following types of loans: - For 30-year fixed-rate conforming mortgages (loan balances of $726,200 or less), rates averaged 6.23, down from 6.42 percent the week before. With points decreasing to 0.67 from 0.73 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans, the effective rate also decreased.
- Rates for 30-year fixed-rate jumbo mortgages (loan balances greater than $726,200) averaged 6.08 percent, essentially unchanged from 6.09 percent the week before. With points decreasing to 0.4 from 0.66 (including the origination fee) for 80 percent LTV loans, the effective rate decreased.
- For 30-year fixed-rate FHA mortgages, rates averaged 6.26 percent, down from 6.39 percent the week before. Although points increased to 1.05 from 1.03 (including the origination fee) for 80 percent LTV loans, the effective rate decreased.
- Rates for 15-year fixed-rate mortgages, rates averaged 5.58, down from 5.94 percent the week before. With points decreasing to 0.54 from 0.62 (including the origination fee) for 80 percent LTV loans, the effective rate also decreased.
- For 5/1 adjustable-rate mortgages (ARMs), rates averaged 5.31 percent down from 5.37 percent the week before. Although points increased to 0.74 from 0.72 (including the origination fee) for 80 percent LTV loans, the effective rate decreased.
Call us at (480) 205 2234 to get more information about the current mortgage rates. |
