Mortgage Rates Remain on Upward Trajectory
The U.S. economy is showing strong signs of improvement, which is in turn easing some of the regulation on the housing market and has led to an increase in mortgage rate averages.
Freddie Mac’s Primary Mortgage Market Survey for the week ending Sept. 5 showed that 30-year fixed-rate mortgage averaged surpassed the 4.5 percent mark. That is nearly a full percentage point higher than the 3.5 percent 30-year fixed-rate mortgage average recorded this week last year.
“Mortgage rates edged up this week on signs of a stronger economic recovery,” said Frank Nothaft, vice president and chief economist at Freddie Mac. “Real GDP was revised upwards to 2.5 percent growth in the second quarter of this year. In addition, residential construction spending rose for a ninth consecutive month in July. Lastly, the manufacturing industry expanded by the fastest pace in August since June 2011.”
The 15-year fixed-rate mortgage average hit nearly 3.6 percent for the same week, up substantially from the same week last year when it was nearly 2.9 percent.
Picking apart mortgage rates
Although no prospective home owner wants to learn that long-term mortgage rate averages are trending upward, the fact remains that the news is till relatively good as the housing market is posting strong enough gains to encourage the upward mobility of mortgage rates as they no longer need to be pushed below the 4 percent mark just to encourage home buying.
Also, it’s important to keep in mind that these long-term mortgage rate averages are simply that: averages. The contracted rate is different for every home buyer, and if factors like your credit score, are strong enough then you could see your contracted mortgage rate fall substantially below the national average.
If you’d like to learn more about the home buying process, obtaining a mortgage and the multiple options available when it comes to financing, contact us today. We are mortgage professionals who’d love to get you on your way.