After ending January with the highest rate of the year, today’s benchmark 30 Year Fixed Rate remains unchanged, based on Freddie Mac’s weekly rate survey.
While the 3.530% rate didn’t move, consumers did get a psychological benefit as other popular programs saw a decline. The 15 Year changed from 2.810% to 2.770%. The 5/1 ARM (adjustable rate mortgage) changed from 2.700% down to 2.630% and the 1 Year ARM changed from 2.590% to 2.530%.
60 days to close
After last week’s sharp rise, this week’s total comparison can be viewed with optimism. The result of historically low rates has seen a steady stream of mortgage applications. Combined with the overall economy, many consumers are desperately attempting to reconcile their credit history so they can participate in a market. “My biggest issue is getting my clients through the pipeline as currently we are running about 60 days to close a refinance and purchases are closed based on settlement timelines,” mentioned Senior Loan Consultant Craig Yamamoto.
“In twenty five years in the business, it’s good to help borrowers complete their transactions. My biggest hurdle is getting them through the additional documentation requirements investors are requiring to achieve loan approval. It’s a juggling act that test all of my skills,” Yamamoto added as he sighed while showcasing current loans scheduled to close in February.
Low rates are a crucial metric for the housing sector to build momentum. At the same time as the economy improves, the normal reaction is for rates to increase. That is why more consumers as well as their real estate professionals are monitoring more closely those metrics which may affect mortgage rates; such as Wall Street, the 10 Year Treasury, Unemployment data, Housing starts, just to name a few.