Mortgage Rates Roundup

mortgage rates

Markets reacted to the Fed’s decision this week, causing mortgage rates to dip down.

Sean Becketti, chief economist at Freddie Mac, had this to say about the reaction mortgage rates had:

“Global growth concerns and lackluster inflation convinced the Fed to defer a hike in the Federal funds rate. In response, Treasury yields fell about 9 basis points over the week, with some larger day-to-day swings along the way. In response, the interest rate on 30-year fixed rate mortgages dropped by 5 basis points to 3.86 percent. Mortgage rates have remained below 4 percent for 9 consecutive weeks and have remained range-bound between 3.8 and 4.1 percent since May.”

This week at Total Mortgage, our 30-year fixed rate dropped 0.125 down to 3.625%; the 15-year fixed stayed the same at 2.875%; and the 5-year ARM went up 0.125 points to 3.625%. You can see in the tables below that all our rates are once again below the industry benchmarks.

Rate Hike Speculation

Since the Federal Reserve’s decision to keep interest rates at the current range of 0 percent to .25 percent was made last week, there has been much speculation as to when they will end up raising rates. Janet Yellen has stated that “all meetings are live”, meaning that rates could be raised at the October meeting, but I don’t think anyone seriously believes that will happen (Fed Fund futures says 11% chance).

Realistically, the only chance for action in 2016 will come in December, but in all likelihood that won’t happen either (Fed Fund futures says 35% chance), despite what FOMC chairJanet Yellen or Atlanta Fed President Dennis Lockhart thinks. There’s no knowing what exactly goes on inside the minds of the FOMC members, so for now I think we just have to sit back and look for signs of future action.

Current Mortgage Rates

Our Current Rates:

30-Year Fixed Rate 15-Year Fixed Rate 5-Year ARM
Rates 3.625% 2.875% 2.625%
Fees & Points 0.7 0.6 0.5
APR 3.682% 2.961% 2.982%

* Rates accurate as of 9/25/15. See below for assumptions

Industry Benchmarks:

Freddie Mac

30-Year Fixed Rate 15-Year Fixed Rate 5-Year ARM
Freddie Mac¹ 3.86% 3.08 2.91
Fees & Points 0.7 0.6 0.5

1. Source

Primary Mortgage Market Survey


30-Year Fixed Rate 15-Year Fixed Rate 5-Year ARM
Bankrate² 4.0% 3.18% 3.19%
Fees & Points 0.26 0.26 0.26

2. Source

Where are rates going?

Mortgage rates are proving to be on a bit of a roller-coaster ride these days. While they dipped down this week, there’s really no telling what they’ll do next week. The only thing I can somewhat confidently say is that I don’t expect them to rise or dip too far out of the 3-4.5% range.

What does this mean for me?

In a volatile market such as we’re seeing right now, it’s impossible to predict where rates will go. I think the best course of action is to look at your situation and the current rates and make a decision based on the facts in front of you, not what might happen down the road.

Rate Assumptions
Mortgage rates are volatile and are subject to change without notice. All rates shown are for 30-day rate locks for an owner-occupied primary residence unless otherwise noted.
Extended locks are available; prices will vary accordingly.
The APR for 30-year conventional fixed-rate mortgage loan amounts is calculated using a loan amount of $417,000, 0.7 points, a $495 application fee, $799 underwriting fee.*
The APR for 15- year conventional fixed-rate mortgage loan amounts is calculated using a loan amount of $417,000, 0.6 points, a $495 application fee, $799 underwriting fee. 15-year conventional mortgage rates are calculated with a 15-year loan term.*
The APR for adjustable rate mortgages (ARMs) is calculated using a loan amount of $417,000, 0.5 points, a $495 application fee, $799 underwriting fee. Some rates and fees may vary by state.*
Products are subject to availability on a state-by-state basis. All interest rates listed are for qualified applicants with 740 or higher FICO and 80 LTV over a 30-year loan term except where otherwise noted and are subject to mortgage approval with full documentation of income.