At the beginning of the year, mortgage rates were around 4.2%. And although this was a decrease from the year before, the rate was still much higher than expectations as it was the first time in several years that a new year began with rates 4%. From January to March, these rates rose steadily with March rates averaging around 4.25%. In our local area, most lenders were much higher with rates averaging around 4.35%. Mortgage rates experienced yearly lows in June and then July with a 4% average.
In August, those rates continue to trend lower nationally with the majority being quoted at 3.875% and ranging as high as 4%. Week to week, the rates don’t change much, but the small decreases have added up. In the meantime, we once again are holding steady as these rates have been the norm for roughly three weeks now. Earlier this week, Ted Rood, a senior originator who regularly shares his suggestions for market trends on Mortgage Daily News, said ”Small early gains were eclipsed by mid-day as our holding pattern continued. I’m guessing market participation was limited today, know mine was. Wish I had more sage suggestions, but when markets tread water for weeks, it’s challenging.” Though it’s clear the eclipse had its unique influence, the mortgage rates are clearly making it a little more difficult for any clear decisions to be made.”
While federal has been trending lower most of this year, local banks have been trying to hold onto their rates hanging around 4.15% for a couple months now. This month, we’re finally seeing many start to give up and head to the 4% range. Hopefully, this holds true, but in the meantime, these are some of the lowest rates we have seen all year.