If you’re looking for the best mortgage rates available, you may be in luck. The current mortgage rates are still trending downward. Analysts’ weekly surveys of mortgage rates among hundreds of banks across the United States indicated that the standard 30-year rates of mortgage went down 0.01 percent, or one basis point, to stand at 4.12 percent. 15-year mortgage rates dropped about 0.03 percent or three basis points. Current Mortgage interest rates starting in August are still low for 14 months meaning the home-buyer has been enjoying lower rates for over a year. Currently, even those who are refinancing are also benefiting.
Average 30-year mortgage rates
In the first week of August, the 30-year mortgage rates decreased by one basis point to stand at 4.12 percent across the country. The new rate is only accessible to ‘prime’ mortgage loan borrowers who are ready to pay extra discount points of 0.6 at closing, which is a cost that is paid once in a loan; a single discount point carries a cost similar to a single percent of the amount of the first mortgage loan. For example, at the conforming 2014 loan limit of $450,000, one discount point would demand $4,500 to be paid during closing in a Miami, Florida loan.
Discount points are also payable either as additions to the loan size in a mortgage refinance or as cash and are tax deductible. In the first week of August, there was a decrease in 15-year mortgage rates as well, falling to about 3.23 percent across the country after losing 3 basis points. On average, to lock a 15-year mortgage rate within the new rate of 3.23 percent cost discount points of about 0.7.
Mortgage rates for USDA, VA and FHA loans showed some improvement as the rates are also the lowest in 14 months with the purchasing power of a home buyer remaining at almost 8 percent since the beginning of 2014.
August 2014 Mortgage Rates
In July, the mortgage rates did not change much. At the start of July, the 30-year mortgage rates stood at 4.12 on average and stood their ground as August started. Mortgage rates on average moved on a weekly basis across the month of July at only 1.6 basis points, the lowest weekly move that has been reported in over 5 years. In July, the rates uncharacteristically stood their ground and made shopping for a mortgage really simple.
However, as August starts, this trend is bound to come to an end. The current market seems ready to burst with a number of things expected to change mortgage rates for August 2014. One example is the increasing number of jobs. If the 209,000 jobs that entered the economy in July are anything to go by, which is the sixth concurrent month where growth employment opportunities went over 200,000; you’d have to back to 1997 to find such a long streak.
Consumer spending will then increase, raising inflation pressure as the Fed loses its interest in holding down mortgage rates. The Federal Reserve is expected to do away with market stimulus if inflation rates go up, which will make mortgage rates keep climbing. Geopolitical concerns such as the Gaza strip strife, tension between Russian and Ukraine and across Africa are also expected to have an effect on mortgage rates for August 2014.