Despite Home Price Gains, Low Mortgage Rates Drive Demand and Home Affordability Remains High

Record low mortgage rates have helped end the housing bust and have contributed to increasing demand and thus, higher home prices over the past year. Rising incomes and a better job market have also spurred demand as buyers return to the market in droves. The National Association of Realtors' Housing Affordability Index remains high despite home prices increasing for the past 13 months.

The NAR's report showed the national median price for an existing, single-family house was $176,600 in the first quarter, up 11.3% from the first quarter of 2012. The first quarter year-over-year increase was the largest increase in the median home price in over 7 years. You have to go back to the height of the housing bubble to see double digit price increases.

Loan Type
Purchase    Refinance
Location
State/City    Zip Code
Loan Amt Points FICO % Down
  
$
30 yr fixed refi in 23223, All points, Credit score: 740+     Sort by:
Lender
APR
Rate
Cost & Fees
Notes
 
30 yr fixed Mortgage Loan from E-Click Lending
E-Click Lending
https://www.brimg.net/system/img/inst/4213_logo.gif
300000
Refinance
4.981
4.750
USD
E-Click Lending Logo
NMLS # 227765
State Lic # MC-5920
(877) 387 - 3899
at 1.000 pts
30 day lock rate
Est payment: $1,564.94
Fees in APR: $4,835
 
 
30 yr fixed Mortgage Loan from ConsumerDirect Mortgage, a division of First Bank
ConsumerDirect Mortgage, a division of First Bank
https://www.brimg.net/system/img/inst/8087_logo.gif
300000
Refinance
4.168
3.990
USD
ConsumerDirect Mortgage, a division of First Bank Logo
NMLS # 472433
at 1.000 pts
30 day lock rate
Est payment: $1,430.52
Fees in APR: $3,359
 
30 yr fixed Mortgage Loan from ConsumerDirect Mortgage, a division of First Bank
ConsumerDirect Mortgage, a division of First Bank
https://www.brimg.net/system/img/inst/8087_logo.gif
300000
Refinance
4.269
4.250
USD
ConsumerDirect Mortgage, a division of First Bank Logo
NMLS # 472433
at 0.000 pts
30 day lock rate
Est payment: $1,475.82
Fees in APR: $675
 
30 yr fixed Mortgage Loan from E-Click Lending
E-Click Lending
https://www.brimg.net/system/img/inst/4213_logo.gif
300000
Refinance
5.179
5.125
USD
E-Click Lending Logo
NMLS # 227765
State Lic # MC-5920
(877) 387 - 3899
at 0.000 pts
30 day lock rate
Est payment: $1,633.46
Fees in APR: $1,825
 
 
30 yr fixed Mortgage Loan from JG Wentworth Home Lending
JG Wentworth Home Lending
https://www.brimg.net/system/img/inst/10054_logo.gif
300000
Refinance
4.375
4.375
USD
JG Wentworth Home Lending Logo
NMLS # 2925
State Lic # MC-1875
at 0.000 pts
45 day lock rate
Est payment: $1,497.86
Fees in APR: None
 
 
30 yr fixed Mortgage Loan from Citibank, N. A.
Citibank, N. A.
https://www.brimg.net/system/img/inst/8189_logo.gif
300000
Refinance
4.672
4.625
USD
Citibank, N. A. Logo
NMLS # 412915
(877) 387 - 1820
at 0.000 pts
60 day lock rate
Est payment: $1,542.42
Fees in APR: $1,635
 
 
30 yr fixed Mortgage Loan from E-Click Lending
E-Click Lending
https://www.brimg.net/system/img/inst/4213_logo.gif
300000
Refinance
4.877
4.490
USD
E-Click Lending Logo
NMLS # 227765
State Lic # MC-5920
(877) 387 - 3899
at 2.000 pts
30 day lock rate
Est payment: $1,518.27
Fees in APR: $7,176
 
 
30 yr fixed mtg refi Mortgage Loan from Raymond James Bank, NA
Raymond James Bank, NA
300000
Refinance
4.662
4.625
USD
Raymond James Bank, NA
4.662%
2/19/2019
4.625%
at 0.000 pts
45 day lock rate
Est payment: $1,542.42
Fees in APR: $1,299
 
 
30 yr fixed mtg refi Mortgage Loan from Fulton Bank, NA
Fulton Bank, NA
300000
Refinance
4.686
4.625
USD
Fulton Bank, NA
4.686%
2/19/2019
4.625%
at 0.375 pts
60 day lock rate
Est payment: $1,542.42
Fees in APR: $1,007
 
 
30 yr fixed mtg refi Mortgage Loan from Citizens Bank, NA
Citizens Bank, NA
300000
Refinance
4.665
4.625
USD
Citizens Bank, NA
4.665%
2/15/2019
4.625%
at 0.000 pts
60 day lock rate
Est payment: $1,542.42
Fees in APR: $1,408
 
 
30 yr fixed mtg refi Mortgage Loan from Virginia Credit Union
Virginia Credit Union
300000
Refinance
4.465
4.375
USD
Virginia Credit Union
4.465%
2/19/2019
4.375%
at 0.500 pts
45 day lock rate
Est payment: $1,497.86
Fees in APR: $1,650
 
 
30 yr fixed mtg refi Mortgage Loan from State Department Federal Credit Union
State Department Federal Credit Union
300000
Refinance
4.557
4.500
USD
State Department Federal Credit Union
4.557%
2/18/2019
4.500%
at 0.000 pts
60 day lock rate
Est payment: $1,520.06
Fees in APR: $2,000
 
 
30 yr fixed mtg refi Mortgage Loan from Santander Bank, N.A.
Santander Bank, N.A.
300000
Refinance
4.683
4.625
USD
Santander Bank, N.A.
4.683%
2/21/2019
4.625%
at 0.000 pts
60 day lock rate
Est payment: $1,542.42
Fees in APR: $2,004
 
 
30 yr fixed mtg refi Mortgage Loan from Bank of Oak Ridge
Bank of Oak Ridge
300000
Refinance
4.295
4.250
USD
Bank of Oak Ridge
4.295%
2/21/2019
4.250%
at 0.250 pts
60 day lock rate
Est payment: $1,475.82
Fees in APR: $853
 
 
30 yr fixed mtg refi Mortgage Loan from Bank of America
Bank of America
300000
Refinance
4.238
4.125
USD
Bank of America
4.238%
2/20/2019
4.125%
at 0.913 pts
60 day lock rate
Est payment: $1,453.95
Fees in APR: $1,289
 
 
30 yr fixed mtg refi Mortgage Loan from Apple Federal Credit Union
Apple Federal Credit Union
300000
Refinance
4.470
4.375
USD
Apple Federal Credit Union
4.470%
2/20/2019
4.375%
at 1.000 pts
60 day lock rate
Est payment: $1,497.86
Fees in APR: $352
 
 
30 yr fixed mtg refi Mortgage Loan from Northwest Federal Credit Union
Northwest Federal Credit Union
300000
Refinance
4.545
4.500
USD
Northwest Federal Credit Union
4.545%
2/20/2019
4.500%
at 0.500 pts
45 day lock rate
Est payment: $1,520.06
Fees in APR: $79
 
 
30 yr fixed mtg refi Mortgage Loan from LincolnWay Community Bank
LincolnWay Community Bank
300000
Refinance
4.406
4.375
USD
LincolnWay Community Bank
4.406%
2/19/2019
4.375%
at 0.000 pts
30 day lock rate
Est payment: $1,497.86
Fees in APR: $1,085
 
 

Mortage Data Provided by Bankrate.com Many lenders have different rates on their own Websites than those posted on Bankrate.com. In order to get the Bankrate.com rate, please identify yourself as a Bankrate.com customer. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the lender you choose, please click here.

The rates above were collected by Bankrate.com on the dates specified. Rates are subject to change without notice and may vary from branch to branch. Rate/APR and terms may vary based on the creditworthiness of the individual and the extent to which the loan differs from the one used for Bankrate.com quotes. For criteria used in surveys of rates above, click here. These quotes are from banks, thrifts, and brokers, some of whom have paid for a link to their own Web site, where you can find additional information.






Home Affordability Remains High Despite Home Price Gains as Low Mortgage Rates Drive DemandConventional mortgage rates on 15 year loans hit record lows last week and continue to hover just above record lows this week. Mortgage rates today on 15 year conventional loans are averaging 2.76 percent, a slight increase from last week's record low average rate of 2.73 percent. 30 year mortgage rates are also just above record lows this week averaging 2.62 percent, up from last week's average rate of 2.53 percent.

Long term U.S. Treasury yields have moved higher in the month of May on stronger than expected economic data. 10 year Treasury yields averaged 1.66 percent on May 1st and closed yesterday at 1.92 percent. The 26 basis points rise in yields since the beginning of the month sent mortgage rates higher this past week and will send rates higher this week.

Average rates are increasing this week but rates are also low. The increases won't slow demand for homes since buyers have the most "buyer power" in a generation. The NAR had the following example to show how affordable homes are right now:
The NAR reported the national median family income was $62,200 in the first quarter. If a buyer made a 5% down payment, got a 30 year mortgage rate of 3.5% and had 25% of a gross income devoted to mortgage payments, a buyer would only need an income of $36,500 to buy a house at the median price. With a 10% down payment, the required salary falls to $34,600, and with a 20% down payment, it falls to $30,700.

Even with the recent uptick in mortgage rates, homes remain affordable and in many housing markets in the United States, owning a home is less expensive than renting. Buyers realize this and are buying homes again. In many cases, there are multiple bids on homes - a throwback to the housing bubble.

Home prices are forecasted to increase around 10 percent in 2013 but don't expect double digit price increases in the future. As more inventory comes back onto the market home price increases will return to the more historical norm of 1 percent higher than the inflation rate. Double-digit annual price increases are not sustainable and led to the last housing bust.

Despite all of the positive news, millions of homeowners are still struggling. Every month the Obama Administration releases a "Housing Scorecard." In April's Housing Scorecard, the Obama Administration acknowledges that the housing market has improved but that there is much work left to do to help these homeowners:
The Obama Administration’s efforts to speed the housing recovery are showing continued progress as the April scorecard indicators highlight ongoing improvements throughout the housing market,” said HUD Deputy Assistant Secretary for Economic Affairs Kurt Usowski. “The annual increase in home prices is the highest in nearly seven years and sales of existing and new homes are both up over 10 percent from one year ago. But with so many households still struggling to make ends meet, we have important work ahead.

The Administration’s programs have improved outcomes for homeowners by setting new standards for mortgage assistance and putting into place unprecedented consumer protections,” said Treasury Assistant Secretary for Financial Stability Tim Massad. “HAMP continues to offer struggling families meaningful relief to avoid foreclosure and strengthen local communities.

You can view the Making Home Affordable Report through March 2013 here: Making Home Affordable Performance Report.

Following is a list of current average mortgage rates on conforming and jumbo loans as of May 14, 2013:

Average Conforming Mortgage Rates



  • Fixed 30 year Rates 3.62%

  • Fixed 15 Year Rates 2.76%

  • Adjustable 5 Year Rates 2.58%


Average Jumbo Mortgage Rates



  • Fixed 30 Year Jumbo Rates 3.93%

  • Fixed 15 Year Jumbo Rates 3.38%

  • Adjustable 5 Year Jumbo Rates 2.94%


The mortgage rates listed above are average rates but you can find lenders quoting rates below the averages by searching our rate tables here: MonitorBankRates.com/mortgage-rates.
 
 
Author: Brian McKay
May 16th, 2013
Posted in: Bank Mortgage Rates