Having ticked up to 4.57 percent last week and to within one basis point of last month’s 4.58 percent rate, the highest average rate in over two years, the average rate for a conforming 30-year mortgage has ticked back down to 4.50 percent and should fall at least another ten basis points based on the Fed’s move yesterday.
The 30-year fixed mortgage rate which has averaged 6.75 percent since 1990 was 3.49 percent at this time last year.
As the advertised rate for a conforming 30-year loan at Wells Fargo has ticked down to 4.50 percent, the rate for a Jumbo 30-year loan of over $625,500 in San Francisco has ticked down to 4.125 percent and the discount for a Jumbo loan has widened to 0.35 percentage points versus a historical premium for the larger non-conforming loans.
∙ Mortgage Rates Move Lower [Freddie Mac]
∙ Spike In Sales Due To, Rather Than Despite, A Spike In Rates [SocketSite]
∙ Fed Backs Off Tapering Talk, Expect Mortgage Rates To Ease [SocketSite]