A 3.6 percent average would be the lowest annual average for 30-year FRMs in more than 40 years (the current record low is 3.66, set in 2012). A year ago at this time, it averaged 3.08%.
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NerdWallet daily mortgage rates are an average of the published April with the lowest points for each loan term offered by a sampling of major national lenders. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. This is down from last week’s 2.77% and last year’s 3.08%.
Mortgage originations are expected to surge in the third quarter as Freddie Mac’s forecast for the best year in home sales in a decade looks more and more on target, according to Freddie Mac’s September 2016 Monthly Outlook. In addition, the GSE states that job gains are now being translating into some modest real income gains with average hourly earnings up 2.4 percent year-over-year. The 30-year fixed-rate mortgage followed Treasury yields, falling 2 basis points and settling at 3.48 percent.
Prices of long-term U.S. Treasury bonds rose, pushing their yields lower, as investors awaited the decision of the Federal Reserve Wednesday on interest rates.
30-year fixed-rate mortgage (FRM) averaged 3.50 percent with an average 0.5 point for the week ending September 15, 2016, up from last week when it averaged 3.44 percent.
Showing cash-out refinance activity on the rise in the second quarter, with an estimated $13.3 billion net dollars of home equity converted to cash during refinancing.
The report also states that Freddie Mac is revising their forecast of home price appreciation to 5.6 percent and 4.7 percent in 2016 and 2017, respectively. Homeowners are also taking advantage of low rates and house price appreciation that is increasing their home equity. The refinance index dropped 8 percent, while the purchase index fell 7 percent.
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“Last week, mortgage rates increased to their highest level since June”, said David Stevens, MBA’s president and chief executive. The fee for a 15-year loan was unchanged at 0.5 point.
