Rates Move Higher for the First Time in Three Weeks


Mortgage rates reversed course this week, moving upwards for the first time in three weeks amid more positive economic data, Freddie Mac reports in its weekly mortgage market survey. Production in the manufacturing industry and non-manufacturing sector alike showed signs of expanding.

Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 7:

  • 30-year fixed-rate mortgages: averaged 4.16 percent, with an average 0.8 point, rising from last week’s 4.10 percent average. Last year at this time, 30-year rates averaged 3.40 percent.
  • 15-year fixed-rate mortgages: averaged 3.27 percent, with an average 0.7 point, rising from last week’s 3.20 percent average. A year ago, 15-year rates averaged 2.69 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.96 percent, with an average 0.5 point, holding the same average as last week. Last year at this time, 5 year ARMs averaged 2.73 percent.
  • 1-year ARMs: averaged 2.61 percent, with an average 0.5 point, dropping from last week’s 2.64 percent average. A year ago, 1-year ARMs averaged 2.59 percent.

Source: Freddie Mac

Rewarding Stellar Credit

Published: October 10, 2013

Lending terms are easing up for borrowers who have superior credit. But mortgages are no easier to come by for applicants with unexceptional FICO scores.

According to a recent analysis by Ellie Mae, a mortgage software company in Pleasanton, Calif., credit-score and down-payment requirements have eased. A national sample of mortgage loans closed in August showed an average FICO score of 734 for approved borrowers, down from an average 748 last year. (FICO scores range from 300 to 850, with higher being better.)

Lenders are also approving more loans for those whose credit scores are below 700, according to Jonathan Corr, the president of Ellie Mae. “About 31 percent of loans in August had scores less than 700, compared to 15 percent a year ago,” he said

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How Mortgage Payoff Works in a Refinance

Failing to understand process can cost borrowers


A reader asked her loan officer for an explanation of the process by which her existing loan was paid off when she refinanced. She found the answer completely incomprehensible.

Read the complete article that I just posted a few pages over to your left.

Mortgage Rates May Fall to WWII Low on Fed Purchases

by Brian Louis, Bloomberg, March 19, 2009 March 19 (Bloomberg) -- U.S. mortgage rates may fall to the lowest since World War II on the Federal Reserve's plan to buy up to $300 billion of Treasuries and increase purchases of mortgage-backed bonds. ... Rates for 30-year fixed home loans dropped to 4.98 percent this week, Freddie Mac said today. They may reach 4.5 percent as the Fed's purchases progress, said Mike Larson, real estate analyst at Weiss Research in Jupiter, Florida. ... In 1945, the average mortgage rate was 4.7 percent, Larson said, citing the book, –A History of Interest Rates,– published by Rutgers University Press. Read the complete article here.