Posted February 23, 2015

by Dan Green

As Seen On

• Mortgage Rates

Mortgage Rates Rise Again

For the second straight week, current mortgage rates  open the week worse.

Just 10 days after reaching their best levels in nearly two years, U.S. interest rates have surged to a 2015 high. Conventional mortgage rates are their worst since January 1.

FHA mortgage rates and VA mortgage rates worsened last week, too, reducing the number of U.S. homeowners eligible for a refinance .

Despite last week’s increase, though, mortgage rates remain relatively low and continue to define the Housing Market. Buyers can now afford 10% more home as compared one year ago.

Furthermore, for refinancing households, monthly savings via the HARP refinance and VA Streamline Refinance  programs have multiplied. There are a lot of reasons to refinance to current mortgage rates — even as they’re climbing.

Today’s market is favorable.

Mortgage Rates Rise To 2015 Worst

According to Freddie Mac, the average 30-year conventional fixed rate mortgage rate climbed last week, rising 7 basis points (0.07%) to 3.76% nationwide.

Locking today’s rates cost an average of 0.6 discount points .

Meanwhile, during the week prior, the average 30-year mortgage rate rose 10 basis points (0.10%), making this the worst two weeks for mortgage rate shoppers in more than 60 weeks.

If you didn’t lock rates when rates were their lowest, you may have missed out for good. But, as compared to last year, mortgage rates continue to be a bargain.

30-year rates are down three-quarters of a percentage point, on average; and 15-year rates are lower, too. Not everyone will get access to today’s excellent pricing, though. The Freddie Mac survey carries three big caveats.

First, the Freddie Mac survey is aimed at prime borrowers only.

A prime borrower is one who is able to verify income, who can show credit scores of 740 or higher, and who has a downpayment of twenty percent or more for a purchase. Borrowers not meeting these criteria get access to nominally higher rates.

Second, the Freddie Mac survey reports average mortgage rates.

This means that some mortgage applicants are limited to rates which are higher  than the Freddie Mac reported average of 3.76%; and, some are receiving access to mortgage interest rates below the average of 3.76%.

It’s common for borrowers to get quotes and APR in the low-3 percent range these days, which means that it’s also common to get rates in the high-3s.

And, third, the Freddie Mac mortgage rate survey applies to conventional mortgage rates only.

Mortgage applicants in search of FHA mortgage rates  for an FHA loan; or VA mortgage rates for a VA loan won’t be looking to Freddie Mac loan programs. FHA loans and VA loans are backed by different government agencies from a Freddie Mac loan and, as a result, borrowers with those programs get access to different mortgage rates.

Like conventional mortgage rates, though, FHA mortgage rates and VA mortgage rates dropped last week, too.

The Mortgage Rate Game: Mortgage Rate Predictions

This site hosts a mortgage rate prediction game called The Mortgage Rate Game .

New games start weekly, pitting loan officers, mortgage experts, real estate agents, and consumers against each other in contests to determine who’s best at predicting mortgage rates.

If you’re looking for commentary on today’s mortgage rates, or an idea of where mortgage rates will go next, check out the game. Consider playing, too. We’re looking for the best rate-predictors in the land. Maybe it’s you.

This week’s mortgage rate predictions include the following comments from game players.

t.co/91QkeNjDBJ

Dan Green (@mortgagereports) February 23, 2015

t.co/ft6cpfU7DN

jglynn (@jglynn) February 18, 2015

t.co/GtCVj5iNZi

MyMortgageInsider (@MMI_Tim) February 17, 2015

The Mortgage Rate Game asks players to predict where rates will be two weeks from now, and offers prizes and recognition to the winners. It’s free to play.

Go to The Mortgage Rate Game  and click Sign Up.

Mortgage Rates. What To Watch For This Week

This week, the U.S. economic calendar includes a number of notable influences, including data from housing and the release of GDP.

However, the item most likely to affect this week’s mortgage-backed securities  is the Greece austerity and sovereign debt scenario, which is still in the midst of negotiation.

It was Greece’s initial foray into austerity which helped spark low mortgage rates through the early part of this decade. Now, with an anti-austerity party in power, the terms of that original agreement are subject to change.

Mortgage bonds will move according to the progress of the talks. Interest rates could rise or fall, depending on the rhetoric. Lately, rates have done. It’s been difficult to lock a loan at the best rate available.

The complete economic calendar for the week follows :

• Monday. Dallas Fed Manufacturing Survey; Existing Home Sales
• Tuesday : Case-Shiller Index; Fed Chairwoman Janet Yellen testifies to Congress; Consumer Confidence
• Wednesday :New Home Sales;Fed Chairwoman Janet Yellen testifies to Congress; 5-Year Treasury Note Auction
• Thursday. Jobless Claims; FHFA Home Price Index; Consumer Price Index; 7-Year Treasury Note Auction; Atlanta Fed President Dennis Lockhart speaks
• Friday : GDP; Chicago PMI; Consumer Sentiment; Pending Home Sales Index; New York Federal Reserve President William Dudley speaks; Cleveland Fed President Loretta Mester speaks; Federal Reserve Vice-Chairman Stanley Fischer speaks

Mortgage rate shoppers should pay special attention to Tuesday and Wednesday, when Fed Chairwoman Janet Yellen testifies before Congress. Wall Street will dissect Yellen’s comments for clues about future Fed activity, which will affect the direction of mortgage rates.

The Treasury auctions scheduled for Wednesday and Thursday may also make an impact.

Get A Complimentary Rate Quote Now

Mortgage rates have climbed, but remain near all-time lows. If you’ve been waiting to purchase or refinance, today marks a good day to explore your options for a new home loan. Rates can change quickly and without notice.

Get a complimentary mortgage rate quote now. Rates are available for free, with no obligation to proceed, and with no social security number required to get started.

The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.