averaged 3.32 percent with an average 0.8 point for the week ending November 29, 2012, up from last week when it averaged 3.31 percent. Last year at this time, the 30-year FRM averaged 4.00 percent.
15-year FRM this week averaged 2.64 percent with an average 0.6 point, up from last week when it averaged 2.63 percent. A year ago at this time, the 15-year FRM averaged 3.30 percent.
Click on graph for larger image.This graph shows the MBA's refinance index (monthly average) and the the 30 year fixed rate mortgage
interest rate from the Freddie Mac Primary Mortgage Market Survey®.The Freddie Mac survey started in 1971 and mortgage rates
are currently near the record low for the last 40 years.It usually takes around a 50 bps decline from the previous mortgage rate low to get a significant refinance boom, and refinance activity has picked up.
There has also been an increase in refinance activity due to HARP.
Here is an update to an old graph - by request - that shows the relationship between the 10 year Treasury Yield and 30 year mortgage rates.The y-intercept is around 2.6%, so if the 10 year Treasury yield falls to zero, 30 year mortgage rates would still be around 2.6% (using this fit).
Currently the 10 year Treasury yield is 1.62% and 30 year mortgage rates are at 3.32%.
The third graph shows the 15 and 30 year fixed rates from the Freddie Mac survey since the Primary Mortgage Market Survey® started in 1971 (15 year in 1991).Note: Mortgage rates were at or below 5% back in the 1950s.
... Continue to read.
Start paying off some of your debt. If you owe student loans, car notes and credit card debt, start paying it off before you apply for any mortgages. Even if you have good credit, a big factor that can affect the lender's decision is your debt to income ratio. Try to contribute more to any monthly payments you are currently making on cars, student loans and credit cards. Most lenders look for candidates that have debt expenses that are less than 30 percent of their gross monthly income.
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