In 1980 the band the “Talking Heads” had a hit song called, “Once in a Lifetime”. One of the repeating lyrics of the song was, “Same as it ever was. Same as it ever was”. Who would have ever thought that 37 years later that the David Byrne lyric would be used to describe the mortgage rates!
For the third straight week BankRate.com is reporting that the average rate for a 30 year fixed mortgage is at 3.56 percent. And the forecast for that 3.56 percent rate is it will stay “Same as it ever was” for at least another week. In fact ¾ of the panelists that Bankrate.com interviewed agree!
3.56 percent on a 30 year mortgage is near historic lows. It did dip down to 3.52 percent in early July. But it has also gone over 3.8 percent during the last three month time period.
Just to make the picture complete, for those of interested in a 15 year fixed mortgage the national average is at 2.84 percent. If you are curious about an ARM, the average rate of a 1/5 ARM is at 3.05 percent, and Jumbo loans (Those exceeding $417,000) are at 3.61 percent.
There have been reports of an increase in credit available to lenders. But it appears that most of that credit has been concentrated in the refinancing department.
Lynn Fisher, Mortgage Banker’s Association’s Vice President of Research and Economics said, “The overall credit availability increase in July was driven by an uptick in programs that allow for refinancing among relatively lower credit score borrowers. We observed this trend in both the conventional and government programs.”
Fannie Mae reports both bad and good news when it comes to home ownership and mortgage rates. Fannie Mae says that “homeownership rate dropped to below 63 percent in the second quarter”. The rate actually fell to 62.9 percent which makes it the worst homeowner rate since 1965.
But the great news is that Fannie Mae is reporting that the, “30-year fixed-rate mortgage rate (is) projected to average 3.4 percent during the fourth quarter.”
A lot of places around the country are suffering from low inventory, a down turn in new construction and an increase in home rentals. The great news for the Crystal Coast area is that there is no shortage of inventory plus you too can reap the benefits of near historic low fixed mortgage rates.
Contact Margaret Hitchcock with Hitchcock Realty at (252) 269-2893. She is a Realtor with over a decade of real estate success. Whether it’s a home, condo, waterfront property, land, primary or vacation home, Margaret can help you accomplish your real estate goals.