For those consumers who are planning to purchase a home or refinance their existing mortgage, today’s rate survey offers another window of opportunity
The benchmark 30 Year Fixed Rate Mortgage plunged further and based on Freddie Mac’s weekly rate survey is now offered at 4.100%, which is down from last week’s low of 4.130%. The popular 15 Year Mortgage also decreased and is averaging 2.960%.
The current low rate has not been seen in 4 months and offers consumers an excellent opportunity to improve their financial position. Just a couple of weeks ago, the Mortgage Bankers Association reported that major lenders were seeing a decline in mortgage applications. Fast forward; the obvious benefit to consumers is quicker closing periods. Purchases are driven by the close of escrow deadlines. However, on most refinance transactions sixty day locks or closings use to be the norm. With the reduction in rates as well as improved lender pipelines consumers are offered a rare opportunity to grab their rate while closing their transaction much quicker than previously mandated.
Mortgage rates are cyclical so who knows who low the rates will last or if they will drop any further What is known, is a critical factor in consumer mortgages is positioning or being able to capture the market and close in a timely manner.
The drop in rates was blamed on the near government shutdown, as well as consumer confidence which has not rebounded. Even though the fourth quarter traditionally represents a slowdown in mortgage lending, the drop in rates could stimulate many who are on the sidelines that they could lose their position should rates reverse and move up. The key will be consumers making sure they are credit qualified and have the documentation required, as well as fitting into the various lending programs which are being offered.
The Freddie Mac weekly rate survey is an industry standard and is published every Thursday. The data is compiled from lenders throughout the nation who do business or sell mortgages to Freddie Mac.