Mortgage rates couldn't fall forever, it seems.
This week, for the first time since mid-June, the 30-year fixed rate mortgage rate climbed on a week-over-week basis, moving 6 basis points to 3.55%, on average, nationwide.
According to Freddie Mac, 3.55 percent is the highest average rate at which the benchmark product has been offered in close to 4 weeks.
The Freddie Mac published mortgage rate is available for prime borrowers willing to pay a full set of closing costs plus an accompanying 0.7 discount points.
Discount points are a one-time, upfront mortgage loan fee to be paid at closing where 1 discount point is equal to one percent of your loan size. In this way, a Metro Atlanta home buyer who pays one discount point at closing will be responsible for an additional $1,000 in closing costs per $100,000 borrowed.
However, although Freddie Mac says that the average mortgage rate is 3.55%, not everyone who applies for a conforming mortgage will get access to that rate. This is because Freddie Mac's published rates are the ones offered to "prime" borrowers, the definition of which often includes :
- Top-rated credit scores, typically 740 or higher
- Verifiable income using two year's of tax returns
- Home equity of at least 25%
Borrowers not meeting the above criteria should expect slightly higher mortgage rates and/or discount points. In some cases, such as when an applicant's credit score is below 680, mortgage rates may be higher by as much as 0.500%.
Although mortgage rates are up this week, though, the impact on home affordability is muted. Mortgage payments rose just $3 per month per $100,000 borrowed this week as compared to last week. 3.55% remains the third-lowest Freddie Mac rate of all-time.
Mortgage rates remain unpredictable and there's no guarantee for low rates to last forever -- much less through August. If today's mortgage rates meet your needs, therefore, consider locking something in.
For more information about the Atlanta area real estate market, please email me at email@example.com or call me at 404.918.2500.
Start spreading the news...