Have mortgage interest rates bottomed out?
The most recent Freddie Mac’s weekly Primary Mortgage Market Survey (www.FreddieMac.com) has the most recent average 30-year fixed rate mortgage at 4.00% – about the same as it has been for the past few months.
Over recent months, the average 30-year fixed mortgage rates have ranged between 3.97% and 4.02% with an accompanying 0.70% discount points, and standard closing costs. Closing costs can vary by state and 1 discount point is equal to 1 percent of your loan size. An example of state differences: Minnesota has a “Mortgage registration tax” of either .0023% or .0024% of the loan amount ($230 – $240 on a $100,000 loan) depending on which county the property is located, while Wisconsin doesn’t have this tax at all.
In other words, to get the weekly, published Freddie Mac rate, homeowners should expect to pay all normal and regular closing costs, plus (based on last week) another 0.70% in discount points. Lower interest rates, low fee and no cost loans are available too — typically in exchange for higher costs, or a higher rate.
A breakdown of the Freddie Mac survey shows that interest rates and discount points vary by region. Typically, states in the West Region offer the lowest rates but with the highest costs. East Region states work in reverse; rates are often highest but the accompanying points are fewest.
The most recent mortgage rate breakdown by region shows :
- Southeast Region : 4.06% with 0.9% discount points
- North Central Region : 3.97% with 0.7% discount points
- Southwest Region : 4.04% with 0.7& discount points
- Northeast Region : 4.00% with 0.7% discount points
- West Region : 3.96% with 0.8% discount points
These current rates are well below their 2011 highs. Since mid-April, mortgage rates have been in descent, dropping for 5 consecutive months before reaching to their current, “rock-bottom” levels mid October 2011
Since then however, mortgage rates have held steady with little variance. Things in Europe have settle down, and the the U.S. economy is showing signs of a rebirth, and the housing market is showing two steps forward, one step back signs of recovering.
So, if you’ve been holding out for lower mortgage interest rates, it would appear now is the time to take advantage near historic low interest rate opportunities because, looking ahead to 2012, mortgage rates look poised to rise.