October 11, 2013
Mortgage Rates Hold Near Three Month Lows
With the Federal debt impasse having yet to be resolved, the average rate for a conforming 30-year mortgage ticked up to 4.23 percent last week, a nominal 1 basis point above last week’s three month low of 4.22 percent and 35 basis points below the two-year high of 4.58 percent recorded in August.
The average 30-year fixed mortgage rate was 3.39 percent at this time last year having averaged 6.75 percent since 1990.
∙ Fixed Mortgage Rates Little Changed [Freddie Mac]
∙ Spike In Sales Due To, Rather Than Despite, A Spike In Rates [SocketSite]
First Published: October 11, 2013 9:00 AM
Comments from "Plugged In" Readers
I remember the 18% mortgage. When rates got down to 7%, I couldn't believe the gods could be so generous. I think these 3% - 4% mortgages we've become accustomed to are astonishing, and that it's a good idea to make sure you've loaded up on as much of it as you can get, because we will never see such low rates again.
Posted by: unwarrantedinlaw at October 11, 2013 10:04 AM
Funny thing is I try and get higher rate 30-year fixed mortgages so I can collect the yield-spread premium back on my flips. I would happily take a 30-year fixed at 10%, collect 100 grand in YSP and then sell the place 6 months later. Banks are not quite that stupid which is unfortunate.
Posted by: Jimmy the House Flipper at October 11, 2013 10:10 AM
My goodness, I had never heard of YSP. My loans have been directly with banks so it's not been disclosed.
Posted by: unwarrantedinlaw at October 11, 2013 11:51 AM
@Jimmy - Uhhh... Isn't having the mortgage broker kicking back the YSP to you defrauding the bank?
Posted by: Hawkeye at October 11, 2013 12:16 PM
It's not fraud, it's the opposite of buying down ones loan. Instead of paying up front for a lower interest rate, you pay less closing costs for a higher rate. I don't know if banks will actually give you cash back if you go to a high enough rate.
Posted by: lyqwyd at October 11, 2013 1:25 PM
You can't go high enough to get cash back. They're wise to that one ...
Posted by: Jimmy (No Longer Bitter) at October 11, 2013 3:04 PM
Is there any way to "refinance" just a HELOC? Mine is $50k at 7.125% (ouch! I was in a pinch for quick cash two years ago). My $435k mortgage is a 4% fixed 30-yr. Condo value is around $750k based on recent building sales. I want to keep my 4% fixed 30-yr, but the HELOC is scary with rates set to move (besides, 7.125% is way high already).
Posted by: Happy in SF at October 11, 2013 3:34 PM
Why not just pay off the HELOC. Its only $50k.
Posted by: Jimmy (No Longer Bitter) at October 11, 2013 4:01 PM
Happy in SF- you can refi the HELOC into a fixed rate 2nd loan. Probably lower than 7%, but I think over 5%. Or just refi it into a new HELOC, If you plan to pay it off in the next few years. You can get a new HELOC for way under 7% today, no problem.
Posted by: 49yo hipster at October 11, 2013 9:51 PM
Yeah, I just recently took out a fixed 4.5% second to finance the second home purchase and remodel. Pentagon Federal Credit Union was great.
I also like Patelco Credit Union and have been a customer with them forever. The only reason I did not go with them for the second is that they have a $200k loan limit, but that shouldn't be a problem for you.
Posted by: NoeValleyJim at October 11, 2013 10:06 PM