30-year mortgage rates crawl back below 3% for first time this week | Oct. 14, 2021

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Fox Business 14 October, 2021 - 08:11am

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Based on data compiled by Credible, mortgage rates have fallen for two key terms and remained unchanged for two others since yesterday.

What this means: Today is the first day this week that 30-year rates have fallen below 3%. For most of October, 30-year rates have flirted with the 3% mark, possibly heralding the beginning of predicted rate increases. Locking in a mortgage rate today means homebuyers can get ahead of the coming increases. Twenty-year fixed mortgage rates, which have held steady at 2.750% for seven straight days, may present buyers with an opportunity for interest savings and a lower monthly mortgage payment.

To find the best mortgage rate, start by using Credible, which can show you current mortgage and refinance rates:

Browse rates from multiple lenders so you can make an informed decision about your home loan.

Today’s mortgage refinance rates fell for three key terms while holding steady for the fourth. The average mortgage refinance rate, which reached a 114-day high yesterday, fell to 2.529% today. If you’re considering refinancing an existing home, check out what refinance rates look like:

A site like Credible can be a big help when you’re ready to compare mortgage refinance loans. Credible lets you see prequalified rates for conventional mortgages from multiple lenders all within a few minutes. Visit Credible today to get started.

It’s critical to have an idea of how much you can afford to borrow for a mortgage before you begin home shopping or make an offer on a house.

Generally, the 28/36 rule is a good measure of how much you can afford to borrow without strapping your finances. The rule states that your mortgage payment, including taxes and insurance, shouldn’t be more than 28% of your gross monthly income. And all your debts, including your mortgage and other monthly expenses like car and student loan payments, shouldn’t exceed 36% of your gross monthly income.

For example, if your gross monthly income is $6,250 (annual salary of $75,000), you should be able to afford a monthly payment of $1,750. And your total monthly debt load shouldn’t exceed $2,250.

A general rule of thumb is that you shouldn’t take out a mortgage that’s two to two and half times your gross annual income. So in the above scenario, the maximum you should borrow to buy a house would be $187,500.

Ultimately, lenders determine how much you can afford to borrow by weighing your income, debt, assets, credit and other financial factors.

The average mortgage rate fell to 2.529% today — a five-day low. 

The current interest rate for a 30-year fixed-rate mortgage is 2.990%. This is down from yesterday. Thirty years is the most common repayment term for mortgages because 30-year mortgages typically give you a lower monthly payment. But they also typically come with higher interest rates, meaning you’ll ultimately pay more in interest over the life of the loan.

The current interest rate for a 20-year fixed-rate mortgage is 2.750%. This is the same as yesterday. Shortening your repayment term by just 10 years can mean you’ll get a lower interest rate — and pay less in total interest over the life of the loan.

The current interest rate for a 15-year fixed-rate mortgage is 2.250%. This is down from yesterday. Fifteen-year mortgages are the second most common mortgage term. A 15-year mortgage may help you get a lower rate than a 30-year term — and pay less interest over the life of the loan — while keeping monthly payments manageable. 

The current interest rate for a 10-year fixed-rate mortgage is 2.125%. This is the same as yesterday. Although less common than 30-year and 15-year mortgages, a 10-year fixed-rate mortgage typically gives you lower interest rates and lifetime interest costs, but a higher monthly mortgage payment.

You can explore your mortgage options in minutes by visiting Credible to compare current rates from various lenders who offer mortgage refinancing as well as home loans. Check out Credible and get prequalified today, and take a look at today’s refinance rates through the link below.

Changing economic conditions, central bank policy decisions, investor sentiment and other factors influence the movement of mortgage rates. Credible average mortgage rates and mortgage refinance rates are calculated based on information provided by partner lenders who pay compensation to Credible.

The rates assume a borrower has a 740 credit score and is borrowing a conventional loan for a single-family home that will be their primary residence. The rates also assume no (or very low) discount points and a down payment of 20%.

Credible mortgage rates will only give you an idea of current average rates. The rate you receive can vary based on a number of factors.

Today, mortgage rates are the same as this time last week, and are largely higher than they were on Oct. 14, 2020.

If you’re trying to find the right rate for your home mortgage or looking to refinance an existing home, consider using Credible. You can use Credible's free online tool to easily compare multiple lenders and see prequalified rates in just a few minutes.

Your loan’s term is the number of years in which you’ll make equal monthly payments of principal and interest to repay your mortgage. Generally, shorter repayment terms come with lower interest rates, and longer terms have higher interest rates. Longer terms and shorter terms both have their pros and cons. 

With a shorter repayment term you’ll:

A longer repayment term will give you:

Generally, a shorter repayment term is best for people who can afford a larger monthly payment, who want to build home equity quickly, don’t plan to stay in their home for long and who are buying a house that’s well within their ability to afford.

You might choose a longer repayment term if your priority is a lower monthly payment, you know you’ll be in your home long-term or you want to increase the mortgage amount you can qualify for.

A home insurance policy can help cover unexpected costs you may incur during homeownership, such as structural damage and destruction or stolen personal property. Coverage can vary widely among insurers, so it’s wise to shop around and compare policy quotes.

Credible is partnered with a home insurance broker. If you're looking for a better rate on home insurance and are considering switching providers, consider using an online broker. You can compare quotes from top-rated insurance carriers in your area — it's fast, easy and the whole process can be completed entirely online.

Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

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No, Mortgage Rates Are Not "Sharply Higher" This Week

Mortgage News Daily 14 October, 2021 - 07:34pm

Mortgage rates fell today as a majority of lenders finally got caught up with the past few days of strength in the bond market.  Lenders rely on bonds--specifically mortgage-backed securities (MBS)--to determine where to set mortgage rates.  Bonds are constantly on the move, but lenders prefer to just set mortgage rates once per day, if possible.  As such, when volatility is higher and when rates have been rising more than falling, lenders tend to be more defensive.  In other words, they need to see more sustained improvement than normal before bringing rates back down.

Today's improvement was the biggest of the week, and it brings the average conventional 30yr fixed quote well below those seen at the end of last week.  Even so, there are numerous news articles out today proclaiming "sharply higher" rates.  What's up with that?  As is often the case on Thursdays, the mixed signals result from Freddie Mac's weekly mortgage rate survey which tends to measure Monday/Tuesday rates vs the previous Mon/Tue before finally publishing the results on Thursday at 10am.  

Unfortunately, last Mon/Tue saw the best rates of the previous week and the most recent equivalent time frame (limited to Tuesday only, due to the holiday) saw the highest rates of the current week.  While we're not quite back to the lower levels from the beginning of last week, we're definitely much lower than Friday!

Mortgage news and data since 2004

Mortgage rates jump to highest level since April — and inflation concerns could push them higher

MarketWatch 14 October, 2021 - 09:16am

The 15-year fixed-rate mortgage increased seven basis points to an average of 2.3%, while the 5-year Treasury-indexed hybrid adjustable-rate mortgage rose by three basis points to an average of 2.55%.

“Economic data coming later this week — such as the Producer Price Index and Retail Sales — will provide additional signals on inflation and economic recovery, both of which may have an impact on rates in the coming week,” Thomas said.

The positive news for home buyers in the market right now is that the inventory situation is much improved from earlier this year, which should help to temper the breakneck pace of home-price growth seen over the spring and summer.

“It seems that buyers and sellers are finally taking a step back from the pandemic-induced stampede of the past year to regain their footing and reassess their next steps,” Ratiu said.

Still, anyone looking to buy will need to factor spending an additional $125 each month compared to a year ago due to the increase in both mortgage rates and home prices, Ratiu said. And with affordability always front of mind, especially for first-time home buyers, higher monthly mortgage payments could cause even more Americans to get cold feet about purchasing property.

‘My boyfriend and I are both business owners, so we are only cleared to get a non-traditional loan. His statement loans got cleared for the mortgage so his name will be on the mortgage.’

Jacob Passy is a personal-finance reporter for MarketWatch and is based in New York.

Best day of the week to refinance: 3 key mortgage refinance rates slip lower | Oct. 14, 2021

HousingWire 14 October, 2021 - 08:30am

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Based on data compiled by Credible, three key mortgage refinance rates fell today, including 30-year refinance rates, which fell below 3% for the first time this week. 

Mortgage refinance rates trended down today for the first time this week. Only 20-year fixed refinance rates, which have held steady for seven consecutive days, remained unchanged. Homeowners who’ve been waiting for the right time to lock in a money-saving interest rate may want to act today when rates are down across most terms. Experts have widely predicted that mortgage rates will rise in the final months of 2021 and into 2022.

If you’re thinking of refinancing your home mortgage, consider using Credible. Whether you're interested in saving money on your monthly mortgage payments or considering a cash-out refinance, Credible's free online tool will let you compare rates from multiple mortgage lenders. You can see prequalified rates in as little as three minutes.

The current rate for a 30-year fixed-rate refinance is 2.990%. This is down from yesterday. Refinancing a 30-year mortgage into a new 30-year mortgage could lower your interest rate, but may not have much effect on your total interest costs or monthly payment. Refinancing a shorter term mortgage into a 30-year refinance could result in a lower monthly payment but higher total interest costs.

The current rate for a 20-year fixed-rate refinance is 2.750%. This is the same as yesterday. By refinancing a 30-year loan into a 20-year refinance, you could secure a lower interest rate and reduced total interest costs over the life of your mortgage. But you may get a higher monthly payment.

The current rate for a 15-year fixed-rate refinance is 2.250%. This is down from yesterday. A 15-year refinance could be a good choice for homeowners looking to strike a balance between lowering interest costs and retaining a manageable monthly payment.

The current rate for a 10-year fixed-rate refinance is 2.125%. This is down from yesterday. A 10-year refinance will help you pay off your mortgage sooner and maximize your interest savings. But you could also end up with a bigger monthly mortgage payment.

You can explore your mortgage refinance options in minutes by visiting Credible to compare rates and lenders. Check out Credible and get prequalified today.

These rates are based on the assumptions shown here. Actual rates may vary.

Think it might be the right time to refinance? You can explore your mortgage refinance options in minutes by visiting Credible to compare rates and lenders. Check out Credible and get prequalified today.

Current refinance rates, like mortgage interest rates in general, are affected by many economic factors, like unemployment numbers and inflation. But your personal financial history will also determine the rates you’re offered when refinancing your mortgage.

If you’re interested in refinancing your mortgage, improving your credit score and paying down any other debt could secure you a lower rate. It’s also a good idea to compare rates from different lenders if you're hoping to refinance, so you can find the best rate for your situation. 

Borrowers can save $1,500 on average over the life of their loan by shopping for just one additional rate quote, and an average of $3,000 by comparing five rate quotes, according to research from Freddie Mac

Be sure to shop around and compare rates from multiple mortgage lenders if you decide to refinance your mortgage. You can do this easily with Credible’s free online tool and see your prequalified rates in only three minutes.

Changing economic conditions, central bank policy decisions, investor sentiment and other factors influence the movement of mortgage refinance rates. Credible average mortgage refinance rates are calculated based on information provided by partner lenders who pay compensation to Credible.

The rates assume a borrower has a 740 credit score and is borrowing a conventional loan for a single-family home that will be their primary residence. The rates also assume no (or very low) discount points and a down payment of 20%.

Credible mortgage refinance rates will only give you an idea of current average rates. The rate you receive can vary based on a number of factors.

When you apply for a refinance mortgage, lenders will consider how much equity you currently have in your home. If you don’t meet the lender’s equity requirements, you may not qualify for a refinance with that lender.

Requirements can vary from lender to lender, and depend on the type of refinance you’re doing — rate-and-term vs. cash-out refinance. 

For a rate-and-term refinance, you may be able to qualify with as little as 5% home equity. But your lender will likely require you to purchase private mortgage insurance. Most lenders will prefer a loan-to-value ratio of at least 20% — meaning the amount you owe on your mortgage is no more than 80% of your home’s total value.

Generally, for a cash-out refinance, most lenders will want to see that you have a loan-to-value ratio, or LTV, of at least 20%. But some lenders may be flexible if you have good credit, a history of on-time bill payments and are willing to accept a higher interest rate.

To calculate your loan-to-value ratio, simply divide your loan balance by the current value of your home. For example, if your home’s value is $350,000 and you owe $325,000, your LTV is just under 93% — and you may have difficulty qualifying for a refinance.

Credible also has a partnership with a home insurance broker. You can compare free home insurance quotes through Credible's partner here. It's fast, easy and the whole process can be completed entirely online. 

Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.

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Mortgage And Refinance Rates Today, Oct. 14| Rates falling/steady

The Mortgage Reports 14 October, 2021 - 06:30am

And there may be more good news this morning. Because mortgage rates today look likely to hold steady or inch lower.

Nothing’s arisen that’s shifted my view of where mortgage rates are heading. And, until something does, I’m fairly confident that they’ll carry on higher.

But every upward trend is punctuated with occasional falls. So don’t be surprised when those occur, including yesterday and perhaps today.

Meanwhile, my personal rate lock recommendations remain:

However, I don’t claim perfect foresight. And your personal analysis could turn out to be as good as mine — or better. So you might choose to be guided by your instincts and your personal tolerance for risk.

Before the pandemic and the Federal Reserve’s interventions in the mortgage market, you could look at the above figures and make a pretty good guess about what would happen to mortgage rates that day. But that’s no longer the case. We still make daily calls. And are usually right. But our record for accuracy won’t achieve its former high levels until things settle down.

Here are some things you need to know:

So there’s a lot going on here. And nobody can claim to know with certainty what’s going to happen to mortgage rates in coming hours, days, weeks or months.

The monetary policy body of the Federal Reserve is called the Federal Open Market Committee (FOMC). And yesterday saw publication of the minutes of its last meeting.

Investors always study such minutes closely. But yesterday’s were especially important. Because they revealed the likely timetable for the winding down (“tapering”) of the Fed’s asset purchase programs, which were an emergency response to the pandemic.

And one of those programs has been keeping mortgage rates artificially low for the last 18 months. Clearly, there’s a strong chance that those rates will head yet higher once the Fed begins to withdraw its support.

Those minutes have mostly confirmed what we already knew, with just a few extra details. And a November start for tapering seems to have switched from being likely to highly likely, though a December one remains possible. 

It’s probable that an announcement will be made on Nov. 3, immediately after the next FOMC meeting. Tapering itself would then begin in mid-November. And the faucet will be turned off completely by mid-2022, according to current plans.

Meanwhile, other forces are also acting to push mortgage rates higher. And those include persistently high inflation (as shown in yesterday and today’s relevant economic reports) and more than a month of falling numbers for new COVID-19 cases in the US.

Of course, some new force could emerge at any moment that drags mortgage rates lower. But that would have to be economically catastrophic. And none of us wants that.

For more details about the Fed’s plans and other influences on mortgage rates, read last Saturday’s weekend edition of these daily reports.

Over much of 2020, the overall trend for mortgage rates was clearly downward. And a new, weekly all-time low was set on 16 occasions last year, according to Freddie Mac.

The most recent weekly record low occurred on Jan. 7, when it stood at 2.65% for 30-year fixed-rate mortgages. But then the trend reversed and rates rose moderately.

However, from April, those rises were mostly replaced by falls, though typically small ones. More recently, we had a couple of months when those rates barely moved. But, unfortunately, since early September we’ve been seeing rises.

Looking further ahead, Fannie Mae, Freddie Mac and the Mortgage Bankers Association (MBA) each has a team of economists dedicated to monitoring and forecasting what will happen to the economy, the housing sector and mortgage rates.

And here are their current rate forecasts for the remaining quarters of 2021 (Q3/21 and Q4/21) and the first two quarters of 2022 (Q1/22 and Q2/22).

The numbers in the table below are for 30-year, fixed-rate mortgages. Fannie’s were updated on Sept. 20 and the MBA’s on Sept. 22. But Freddie’s were last refreshed on July 15 because it now publishes these figures only quarterly. And its forecast is looking seriously stale.

However, given so many unknowables, the whole current crop of forecasts may be even more speculative than usual.

All these forecasts expect higher mortgage rates soon or fairly soon. But the differences between the forecasters are stark. And it may be that Fannie isn’t building in the Federal Reserve’s tapering of its support for mortgage rates while Freddie and the MBA are. Or perhaps Fannie believes tapering will have little impact.

Some lenders have been spooked by the pandemic. And they’re restricting their offerings to just the most vanilla-flavored mortgages and refinances.

But others remain brave. And you can still probably find the cash-out refinance, investment mortgage or jumbo loan you want. You just have to shop around more widely.

But, of course, you should be comparison shopping widely, no matter what sort of mortgage you want. As federal regulator the Consumer Financial Protection Bureau says:

Shopping around for your mortgage has the potential to lead to real savings. It may not sound like much, but saving even a quarter of a point in interest on your mortgage saves you thousands of dollars over the life of your loan.

Today’s mortgage and refinance rates  Average mortgage rates edged higher again yesterday. But that may have been lenders catching up with rises that they failed to implement last Friday. This […]

Today’s mortgage and refinance rates  Bond markets were closed yesterday. But average mortgage rates edged higher last Friday. And that means that they were at their highest since the spring. […]

Today’s mortgage and refinance rates  Average mortgage rates only edged a bit higher yesterday. But that was enough to take them to their highest level since April. The good news […]

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.

Incredible pics as solar storm hits Earth

WIVB.com - News 4 13 October, 2021 - 08:12pm

Skygazers have spotted the Northern Lights as geomagnetic storms that struck Earth this week brought on a stunning night-time display, with aurora lights also expected to be seen from Australia.

Eyes were cast upwards to glowing skies above parts of England’s north, Scotland and Northern Ireland.

However, for other areas, cloud is likely to block the green hue of auroras sparked by the huge solar storm.

Solar storms are caused by a type of solar flare called a coronal mass ejection – a huge expulsion of plasma from the Sun’s outer layer, called the corona.

According to the US Space Weather Prediction Centre, the solar event could result in power grid fluctuations as well as “orientation irregularities” for spacecraft.

This happens when a massive burst of material from the sun causes a phenomenon known as a geomagnetic storm, which interferes with the Earth’s magnetic field.

Australians had been told to look out for aurora lights that were expected to be visible from Tuesday night.

The rare event prompted Brits to venture outside last night, to try and capture the perfect shot.

In Kirkwall, in Scotland, a primary school teacher shared four photos of the night sky.

I caught this aurora just as orbital sunrise was beginning. Breathtaking! pic.twitter.com/8km6i4M5Vj

Been Aurora watching for a few hours now and all we can see is a green glow at the other side of the clouds. Our watch continues! #orkney#northernlights#auroraborealispic.twitter.com/fvOv4lXSJB

Miss H Pinner tweeted that there was a “definite aurora glow” while she was searching for the Northern Lights above her house.

Julie Calderwood Fitzsimmons said from Orkney, off the northern coast of Scotland, that she had been “aurora watching for a few hours now and all we can see is a green glow at the other side of the clouds. Our watch continues!”.

Meanwhile Birmingham resident Daniel Tonks shared some dazzling photos of the Northern Lights from Iceland.

Other spectacular displays could be seen in Canada and Norway.

Big shooting star in front of an Aurora in Alta, Norway pic.twitter.com/kt4ImiZVtV

The rare time when the aurora cooperates with my work schedule! Incredible show happening right now in Fairbanks. These were a few shots taken from 8-10pm. #akwx#aurora#northernlights@TamithaSkov@Aurora_Alerts@TweetAurorapic.twitter.com/QFJD2btt8P

Dr Beth Keith said she “drove the kids out to the peaks to stare at a very cloudy sky” before heading back to Sheffield, where the only Northern Lights “we’re seeing tonight” were blanked out by the dark, cloud-filled sky.

The UK Met Office said the aurora was “likely to occur over much of Scotland and perhaps extend into northern England and Northern Ireland tonight”.

A spokesman said, “For many in these areas it will be too cloudy but there are some spots in with a chance.”

The agency added, “Aurora is possible through 11th and 12th across much of Scotland, although cloud amounts are increasing, meaning sightings are unlikely for most.”

Tom Kerss, astronomer and author of Northern Lights: The Definitive Guide to Auroras, urged people to still have a look despite the heavy cloud forecast.

Aurora is in Seattle Tonight 💚 pic.twitter.com/0jOKpdDKdL

The shimmering light of last night's aurora pic.twitter.com/9JpOvD55w0

“Unfortunately I think cloud cover is going to be a bit of an issue for Scotland but it doesn’t mean that you shouldn’t have a go if you have any clear patches at all,” he said.

The forecaster says the solar storm “probably has pockets of enhanced energy in it so it could spike in performance every so often”.

“And that means that it’s quite possible that auroras will actually reach down into the north of England and maybe as far south as somewhere like Belfast or Omagh – not terribly far south,” Mr Kerss said.

“But they might just become visible over the sea from anybody that has a north-facing view across the north of England.”

He added that the chance of disruption to the UK was low due to space weather forecasting and electrical engineering.

“We wouldn’t expect to lose power or have any transformers explode or anything with a storm of this magnitude.

“But it is possible for solar super storms like one that occurred about 150 years ago to cause widespread disruption – we’re just sort of lucky it hasn’t happened yet.”

In an update on Monday, the Space Weather Prediction Centre said the moderate geomagnetic storm watch continued for October 12.

“Aurora can often be observed somewhere on Earth from just after sunset or just before sunrise,” its experts added.

“The aurora is not visible during daylight hours, (it) does not need to be directly overhead but can be observed from as much as 1000km away when the aurora is bright and if conditions are right.

“The aurora is an indicator of the current geomagnetic storm conditions and provides situational awareness for a number of technologies.

“(It) directly impacts high frequency radio communication and GPS/GNSS satellite navigation.

“It is closely related to the ground induce currents that impact electric power transition.

“For many people, the aurora is a beautiful night-time phenomenon that is worth travelling to Arctic regions just to observe.

“It is the only way for most people to actually experience space weather.”

A huge solar storm is playing out, delivering an incredible light show in parts of the world — experts say Australians will see it next.

Melbourne was shocked by a powerful earthquake that rocked the city but a geologist has explained why we shouldn’t be surprised.

Donna Reardon was about to head home from a beach near Wollongong on Sunday when a “gross” object caught her eye.

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