Average rate on 30-year mortgage at 4.58%

By Marcy Gordon, Associated Press

 

WASHINGTON – Aug. 23, 2013 – Average U.S. rates for fixed mortgages rose this week to their highest levels in two years, driven by heightened speculation that the Federal Reserve will slow its bond purchases later this year.

Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan jumped to 4.58 percent, up from 4.40 percent last week. The average on the 15-year fixed loan rose to 3.60 percent from 3.44 percent. Both averages are the highest since July 2011.

Rates have risen more than a full percentage point since May. The latest spike comes after more Fed members signaled they could be open to reducing the bond purchases as early as September. The purchases have helped keep long-term interest rates low, including mortgage rates.

Despite the increase, mortgage rates remain low by historical standards. And recent reports suggest the jump in rates has yet to sap the housing recovery’s momentum.

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Why it might be cheaper to get a jumbo loan

NEW YORK – Aug. 21, 2013 – The summer of 2013 has seen a new kind of blockbuster that could be titled: “Honey, I Shrunk the Jumbo Rate.”

The spread between average rates for jumbo loans and government-backed conforming loans is the narrowest in five years – even with the recent rise in interest rates.

“Our jumbo and conforming rates are neck-and-neck, both on the fixed and the ARM,” said Cyndee Kendall, a Bank of the West senior vice president in the San Francisco Bay Area. “There’s next to no difference between the two.”

The average rate for a 30-year fixed-rate jumbo was 4.69 percent on Aug. 9, compared with 4.51 percent for a 30-year fixed-rate conforming loan, according to HSH.com, which tracks rate trends. Lender enthusiasm for jumbos has generated a 20 percent rise in origination volume just from the first to second quarter of 2013. And by year’s end, volume is expected to hit $220 billion, according to Inside Mortgage Finance, which covers the industry.

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Dreambuilder 16 Open House this weekend

Please join us to tour our latest custom home, nearly complete! Saturday, August 10, 10 AM – noon 212 39th Ave S, Jacksonville Beach, FL 32250 Because the neighborhood is new, it sometimes doesn’t come up on mapping software, so here are the directions: 1)  Take JTB east to 3rd St north 2)  Turn R…

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