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What's Ahead For Mortgage Rates This Week - October 21, 2014

Whats Ahead For Mortgage Rates This Week October 20 2014Last week’s economic highlights included the National Association of Home Builders (NAHB) Housing Market Index for October. The Commerce Department also released Housing Starts for September. Freddie Mac reported that the average rate for a 30-year fixed rate mortgage dropped below four percent. The Fed released its Beige Book report, and Weekly jobless claims came in lower than expected. Here are the details:

Homebuilder Confidence Slips in Spite of Lower Mortgage Rates

U.S. Homebuilder confidence in housing market conditions slipped by 5 points to October’s reading of 54 as compared to September’s reading; this was also lower than the expected reading of 59. Builders are concerned over strict mortgage credit rules, but the NAHB’s chief economist noted that pent-up demand, lower mortgage rates and improved labor markets are expected to drive builder confidence in the near term. Readings of 50 and above indicate that more builders are confident about market conditions than not.

Freddie Mac reported lower average mortgage rates across the board with the rate for a 30-year fixed rate mortgage at 3.97 percent, a drop of 15 basis points from the prior reading. 15-year fixed rate mortgages had an average rate of 3.18 percent from the prior week’s reading of 3.30 percent. The average rate for a 5/1 adjustable rate mortgage fell by 13 basis points to 2.92 percent. Average discount points remained at 0.50 for all mortgage types.

If 30-year fixed rate mortgages can stay below the four percent mark, this could mean additional incentive for fence-sitters to become active home buyers.

Surprise: New Jobless Claims Hit 14-Year Low...Read More

If you’ve been looking at mortgage rates for a purchase or refinance, now is a good time to explore. While conforming rates continue to stay at lower levels - going forward, rates have much more room to rise than to fall.

Kimberly A Cottingham President/CEO                                                                     

 



Today's Rates

Mtg Loan Rate APR
30-yr Fixed 3.92% 4.05%
15-yr Fixed 3.08% 3.24%
1-yr Adj 2.41% 2.99%
* national averages

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