Rates Are Low Again
Thanks to ongoing economic turmoil, mortgage rates are now on sale again, so much so that mortgage refinancing is picking up steam and lifting overall mortgage applications.
Mortgage rates have now fallen for six consecutive weeks, per data from Freddie Mac. The popular 30-year fixed-rate mortgage now sits at 3.65%. It was averaging a much higher 4.01% as of December 31st, 2015.
Some lenders are now offering rates as low as 3.375% on the loan product, a steal for anyone looking to purchase a home or refinance.
Interestingly, purchase volume has still been pretty flat, per the Mortgage Bankers Association, so it’s unclear if the low rates are pushing folks to look for homes. But it’s clearly motivating individuals to look into a refinance.
I looked at some of the larger lenders to see just how low interest rates are at the moment.
What Rates Are Lenders Offering Today?
This is what I saw offered on February 12th, 2016.
One lender, CashCall Mortgage, famous for their no cost refi, is offering a 30-year fixed with no closing costs for 3.625%. They’ve also got a 15-year fixed set at a promotional rate of 2.99% with no fees.
If you actually pay your closing costs out of pocket you should be able to get a rate at least as low as 3.5% on the 30-year, which is pretty much as low as it has been.
Wells Fargo is displaying rates of 3.75% on the 30-year fixed and a rather high 3.25% on the 15-year fixed.
Chase is offering 3.5% on the 30-year fixed with APR at a very low 3.56% as well. They’re charging .75% in discount points for that rate. Their 15-year fixed is also a low 2.875%.
PNC Mortgage is advertising a range of rates on the 30-year fixed from 3.5% to 3.875%, and rates as low as 2.75% on the 15-year fixed.
Flagstar Bank Is Advertising a Rate of 3.375%
The lowest rate I’ve seen advertised by the top 10 mortgage lenders is the 3.375% on offer at Flagstar Bank. The APR is a low 3.535% as well, so closing costs don’t appear to be exorbitant.
If you recall, the 30-year fixed hit its lowest point on record (per Freddie Mac) during the week of November 21, 2012, averaging 3.31%. So it’s pretty much there again.
Over at Bank of America, they’re offering a 30-year fixed for 3.625% with about a half a discount point charged.
There are also some major duds out there. Somehow CitiMortgage is advertising rates of 4% on the 30-year fixed, though they aren’t charging mortgage points.
Still, that’s way higher than the competition. Their 15-year fixed is also set at a pricey 3.375%.
PHH Mortgage is also advertising a relatively high 3.71% rate for their 30-year product and 3.125% for their 15-year fixed.
Interestingly, their 5/1 ARM is more expensive, advertised at 4.125% today.
Remember, while rates are low, it can all change in a hurry. Of course, with how bad the global economy looks at the moment, we could see rates trickle down even further in 2016.
I’ve heard the Chinese housing bubble might make ours look like a walk in the park.
I suppose it’s possible the 30-year fixed could dip below 3%, but we’ll be in really bad shape if that’s the case.