On Monday, there was a notable decrease of 8 basis points in the average rate for a new purchase 30-year fixed mortgage, settling at 7.18%. This drop reversed the gains observed on Friday. Most other mortgage rates either declined or remained unchanged, except for the 30-year refinance mortgage rate average, which increased by 6 basis points to 7.57%. This widened the gap further between these two prominent rates. Rates for adjustable rate mortgages (ARMs) with terms of 10/6, 7/6, and 5/6 saw slight upticks.
Below are the national averages of lenders’ best rates for different loan types:
30-Year Fixed | 7.18% | 7.57% FHA 30-Year Fixed | 7.12% | 7.48% Jumbo 30-Year Fixed | 6.39% | 6.39% 15-Year Fixed | 6.40% | 6.64% 5/6 ARM | 7.13% | 7.30%
These averages represent the lowest rates offered by more than 200 leading lenders nationwide. The rates are based on a loan-to-value ratio (LTV) of 80%, an applicant with a FICO credit score of 700–760, and no mortgage points.
Today, the average 30-year fixed-rate mortgage for new purchase loans decreased to 7.18% on Monday, following a 4 basis point increase on Friday. It has now returned to the rate observed on June 2. Since June 1, rates on 30-year loans have been fluctuating between 7.13% and 7.26%. However, less than a week before that, on May 26, the average reached what is estimated to be a 20-year high of 7.65%.
Jumbo mortgage rates for new purchase loans remained unchanged across the board, with 30-year, 15-year, 7/6 ARM, and 5/6 ARM loans maintaining their levels from Friday. The rate for a jumbo 30-year fixed new purchase mortgage remains at 6.39%, which is estimated to be at least a 14-year high, as jumbo rate averages prior to 2009 are not available. Jumbo refinance rates also saw no changes compared to the previous day. On Monday, the gap between new purchase and refinance rates for a 30-year loan was 39 basis points.
Rates for 15-year mortgages slightly decreased, shedding 2 basis points and returning to 6.40%, the same as Friday. Similar to the 30-year rate, the 15-year average experienced a significant surge in late May. However, the current average is still considerably lower than the peak of 7.03% reached in October of the previous year, which marked a 15-year high.
After a historic rate decline in August 2021, mortgage rates soared in the first half of 2022. By June 2022, the 30-year average had surged to 6.38%, more than double the rate of 2.89% observed just 10 months earlier. An even more dramatic increase occurred in September and October 2022, surpassing the summer peak. Ultimately, the 30-year average climbed another 1.2 percentage points, reaching a 20-year high.
The recent surge in 30-year rates pushed the average to a level 7 basis points higher than the previous October high-water mark. However, it is challenging to determine how far back one would need to look to find 30-year rates higher than those observed on May 26, as daily rate averages were not published before 2009.
{Matzav.com}
Oh great. Now I’ll be able to afford a house in Flatbush.