Mortgage rates dipped last week

The Federal Reserve bumped up the Fed rate by 0.25%, but don't assume that means mortgage rates will go up by 0.25% as well, states Forbes.

Here's a look at how mortgage interest rates have been lately: They dropped in the week ending Mar. 17, 2023.

"The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $726,200) decreased to 6.30% from 6.39%," said the Mortgage Bankers Association (MBA) on Wednesday.

That's the second week in a row this type of loan has seen a drop in interest rate. 15-year mortgage loans also dropped two weeks in a row, down to 6.02%.

Meanwhile, interest rates for FHA-backed 30-year fixed-rate mortgages have increased slightly each week until last week, when rates fell 4% week-over-week.

"The average contract interest rate for 30-year fixed-rate mortgages backed by FHA decreased to 6.32% from 6.58%" in the week ending Mar. 17, according to the MBA.

The MBA survey covers more than 75% of all US retail and consumer direct residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.

Last week, the National Association of Realtors (NAR) said the "average rate on a 30-year fixed mortgage dropped to 6.60% from 6.73%."

"At today’s rate, many can afford to buy a median-priced home since they need to spend less than 25% of their gross income for a monthly mortgage payment," states NAR's Nadia Evangelou. "If rates fall further to 6%, buyers will be able to purchase the median-priced home by putting down 14%, which was the median down payment of buyers in 2022."

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Questions or wondering how much your home is worth today? Contact Kim Heinemann

Licensed Real Estate Salesperson - Howard Hanna | Rand Realty

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