Fixed rate mortgage (FRM) interest rates for 30-year conforming loans should remain affordable, at or below 4.50 percent for the coming months, according to interest rate experts.
The Santa Clara, CA-based Erate Interest Rate Update reports average FRM rates on 30-year conforming mortgages slipped to 4.19 percent the week ending Dec. 13, down from 4.23 percent a week ago, after remaining at or below 4.24 percent for the past month. The rate was 4.95 percent a year ago.
HSH.com predicts that over the next two months, FRM rates will range from 4.20 to 4.50 percent and from 2.95 to 3.25 percent for 5/1 adjustable rate mortgages (ARM)
“The economy is growing mildly, soothing Federal Reserve policies are in place and the fiscal crisis in Europe is getting proper attention. Absent a new shock of some sort, we are in a bit of a holding pattern and should largely remain there,” said Keith Gumbinger, vice president of HSH.com, Gumbinger.
For the week ending Dec. 13, Erate reported the lowest 30-year fixed rate mortgage (FRM) rate was 3.65 percent. The highest was 6.90 percent.
The average rate for the 15-year FRM, 3.47 percent was down from 3.54 percent a week ago, according to Erate, a financial information publisher and interest rate tracker since 1999.
The high and low 15-year FRM rate were 6.66 percent and 2.82 percent, respectively. A year ago, the average 15-year FRM rate was 4.29 percent.
Erate’s National APR (annual percentage rates) numbers are tallied from the interest rates of some 200 mortgage originators.
On Dec. 13, the average interest rate for the 5/1 adjustable rate mortgage (ARM), 3.19 percent, was unchanged from a week ago. The 5/1 ARM averaged 3.26 percent last year at this time. For the week, the low 5/1 ARM was 1.86 percent and the high, 5.18 percent.
The FRM rates for 15- and 30-year mortgages and the 5/1 ARM rates are all based on a $200,000 purchase loan, with an 80 percent loan-to-value ratio, for an owner-occupied, single-family residence.
Erate reported the average rate for 30-year, non-conforming jumbo loans came in at 4.71 down from 4.74 percent last week and down from 5.61 percent a year ago.
The jumbo averages are based on a $450,000 purchase loan with an 80 percent loan-to-value ratio for an owner-occupied, single-family residence.
On Dec. 13, the average variable rate on home equity lines of credit (HELOC) was 4.73 percent, unchanged from the last three weeks. The lowest HELOC rate was 2.25 percent and the high, 9 percent, also unchanged. A year ago, the rate averaged 4.92 percent.
The average FRM rate on 15-year home equity loans was 6.60 percent, unchanged for four weeks and 6.97 percent last year. Rates on 15-year home equity loans ranged unchanged from previous weeks, from 3.13 percent to 11.25 percent.
Home equity loan rates are based on a $50,000, 80 percent loan-to-value note.
