FreddieMac Weekly Mortgage Market Survey

Growing optimism about the state of the economy was quickly erased with last Friday’s May employment report. The disappointing release caused the 30-year fixed-rate mortgage to respond by falling to 3.60 percent. This week marks the 10th consecutive week the 30-year rate has averaged under 3.7 percent, allowing an extended window for homebuyers to take advantage of these historically-low borrowing costs.

Interest rates decreased to 3.60%, from an average of 3.66% (the previous week’s survey) for a 30 year Fixed Rate Mortgage (FRM). Last year’s weekly survey average was 4.04%.

The national interest rates for the 30-year FRM started at 3.97% this year.

The 3.97% was the highest interest rate for 2016, while the interest rate for May 12th was the low for 2016 at 3.57%.

The table below shows the effect on a monthly Mortgage payment based upon the 30-year FRM and the median sold price with 20 percent down for single-family homes ($309,200) and condominiums ($207,000) in the Naples, Bonita Springs, and Estero areas of southwest Florida.

Interest rates for the 15 year fixed rate mortgage decreased to an average of 2.87% down from last week’s 2.92%. Last year’s weekly survey average was 3.25%

At the start of the year, the 15-year fixed rate mortgage was at 3.26%, which was the high for the year. The low for the year occurred during the weekly survey week of May 12th and May 19th at 2.81%.

The table below shows the effect on a monthly mortgage payment based upon the 15-year FRM and the median sold price with 20 percent down for single-family homes and condominiums in the Naples, Bonita Springs, and Estero areas of southwest Florida.

The average interest rates for the 5/1 ARM (adjustable rate mortgage) for the current week is 2.82%, down from last week’s 2.88%. Last year the weekly survey average was 3.01%.

The 5/1 ARM started the year at 3.09% and was the high rate for the current year. The 5/1 ARM bottomed during the week of May12th at 2.78%.

Although Freddie Mac attempts to provide reliable, useful information in this document, Freddie Mac does not guarantee that the information is accurate, current, or suitable for any particular purpose. Estimates contained in this document are those of Freddie Mac currently and are subject to change without notice.

This post - Mortgage Interest Rates as of June 9 and Effects on Monthly Payments first appeared on Naples Real Estate Blog - News and Market Trend Statistics.