30 Year Rates Fall Below 3.50 as 548,000 Homes Regain Equity

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Average 30 year mortgage rates increased last week to 3.51 percent, the first time in almost 3 months that rates were above 3.50 percent. The increase was short lived as 30 year mortgage rates fell to 3.49 percent this week. We expect 30 year mortgage rates to stay below 3.50 percent in the interim unless the Federal Reserve increases the fed funds rate this week.

As of September 18, the CME Group's FedWatch Tool has put the probability of a rate hike at only 12 percent. Since it's very unlikely the Fed will increase the fed funds rate, average mortgage rates will mostly fall from current levels this week.

Mortgage rates are indirectly tied to the federal funds rate. As the Federal Reserve raises or lowers the fed funds rate, bond yields usually follow higher or lower. Mortgage lenders set the rate they offer based on 10 year bond yields. As bond yields fall, lenders lower their rates and vice versa.

Mortgage rates are just above record lows. Locking in a lower rate before they climb can save you thousands of dollars over the life of your loan. If you haven't already taken advantage of these near-record low rates, you should consider refinancing. Even if you tried before, refinancing may now be an option since home prices are on the uptick and you may have more equity in your home. 

Core Logic (NYSE: CLGX), reported 548,000 homes regained equity in the second quarter of 2016 compared to the previous quarter. The percentage of homes with positive equity increased to 92.9 percent of all mortgaged properties, or approximately 47.2 million homes.

Unfortunately, there are still 3.6 million homes with a mortgage of negative equity, or 7.1 percent of all mortgage properties. Negative equity is when the mortgage(s) on the property are higher than the home's value. The number of homes with negative equity is declining sharply.  In the first quarter of 2016, the number of homes with negative equity stood at 4.2 million homes.

The only way to find out if your home has increased enough in value to refinance your loan is to get an appraisal. Before you take on the cost of an appraisal, consider whether or not refinancing makes sense for you. If you can get a refinance rate of at least 1.00 percent lower than your current rate and you plan to stay in your home for 3 years or more, refinancing is likely a good option.

You can see a list of refinance rates from many different lenders by using our mortgage rate tables at MonitorBankRates.com. Unlike most websites, you don't have to provide any personal information or contact information to see a list of rates.




Loan Type
Purchase    Refinance
Location
State/City    Zip Code
Loan Amt Points FICO % Down
  
$
30 yr fixed refi in 06101, All points, Credit score: 740+     Sort by:
Lender
APR
Rate
Cost & Fees
Notes
 
30 yr fixed Mortgage Loan from Garden State Home Loans
Garden State Home Loans
https://www.brimg.net/system/img/inst/7950_logo.gif
300000
Refinance
3.720
3.624
USD
Garden State Home Loans Logo
NMLS # 473163
State Lic # ML-473163
(877) 387 - 9107
at 0.100 pts
30 day lock rate
Est payment: $1,367.99
Fees in APR: $3,210
Thanks for the inquiry! 
 
30 yr fixed Mortgage Loan from Garden State Home Loans
Garden State Home Loans
https://www.brimg.net/system/img/inst/7950_logo.gif
300000
Refinance
3.874
3.874
USD
Garden State Home Loans Logo
NMLS # 473163
State Lic # ML-473163
(877) 387 - 9107
at 0.000 pts
30 day lock rate
Est payment: $1,410.54
Fees in APR: None
Thanks for the inquiry! 
 
30 yr fixed Mortgage Loan from Better.com
Better.com
https://www.brimg.net/system/img/inst/9722_logo.gif
300000
Refinance
4.000
4.000
USD
Better.com Logo
NMLS # 330511
State Lic # ML-330511
at 0.000 pts
30 day lock rate
Est payment: $1,432.25
Fees in APR: None
Thank you for your quote. 
 
30 yr fixed Mortgage Loan from Garden State Home Loans
Garden State Home Loans
https://www.brimg.net/system/img/inst/7950_logo.gif
300000
Refinance
9.490
9.125
USD
Garden State Home Loans Logo
NMLS # 473163
State Lic # ML-473163
(877) 387 - 9107
at 1.100 pts
30 day lock rate
Est payment: $2,440.90
Fees in APR: $6,153
Thanks for the inquiry! 
 
30 yr fixed mtg refi Mortgage Loan from Bank of America
Bank of America
300000
Refinance
4.087
4.000
USD
Bank of America
4.087%
5/24/2019
4.000%
at 0.590 pts
60 day lock rate
Est payment: $1,432.25
Fees in APR: $1,351
 
 
30 yr fixed mtg refi Mortgage Loan from Savings Bank of Danbury
Savings Bank of Danbury
300000
Refinance
4.147
4.125
USD
Savings Bank of Danbury
4.147%
5/24/2019
4.125%
at 0.000 pts
60 day lock rate
Est payment: $1,453.95
Fees in APR: $790
 
 
30 yr fixed mtg refi Mortgage Loan from First National Bank of Omaha
First National Bank of Omaha
300000
Refinance
4.783
4.750
USD
First National Bank of Omaha
4.783%
5/24/2019
4.750%
at 0.125 pts
60 day lock rate
Est payment: $1,564.94
Fees in APR: $752
 
 
30 yr fixed mtg refi Mortgage Loan from TD Bank, NA
TD Bank, NA
300000
Refinance
4.029
4.000
USD
TD Bank, NA
4.029%
5/21/2019
4.000%
at 0.000 pts
45 day lock rate
Est payment: $1,432.25
Fees in APR: $1,043
 
 
30 yr fixed mtg refi Mortgage Loan from Citizens Bank, NA
Citizens Bank, NA
300000
Refinance
4.405
4.375
USD
Citizens Bank, NA
4.405%
5/17/2019
4.375%
at 0.000 pts
60 day lock rate
Est payment: $1,497.86
Fees in APR: $1,056
 
 
30 yr fixed mtg refi Mortgage Loan from The Guilford Savings Bank
The Guilford Savings Bank
300000
Refinance
4.041
4.000
USD
The Guilford Savings Bank
4.041%
5/24/2019
4.000%
at 0.250 pts
60 day lock rate
Est payment: $1,432.25
Fees in APR: $719
 
 
30 yr fixed mtg refi Mortgage Loan from LincolnWay Community Bank
LincolnWay Community Bank
300000
Refinance
4.030
4.000
USD
LincolnWay Community Bank
4.030%
5/21/2019
4.000%
at 0.000 pts
30 day lock rate
Est payment: $1,432.25
Fees in APR: $1,085
 
 
30 yr fixed mtg refi Mortgage Loan from Union Savings Bank
Union Savings Bank
300000
Refinance
4.274
4.250
USD
Union Savings Bank
4.274%
5/24/2019
4.250%
at 0.000 pts
60 day lock rate
Est payment: $1,475.82
Fees in APR: $852
 
 
30 yr fixed mtg refi Mortgage Loan from UniBank for Savings
UniBank for Savings
300000
Refinance
4.536
4.500
USD
UniBank for Savings
4.536%
5/24/2019
4.500%
at 0.250 pts
60 day lock rate
Est payment: $1,520.06
Fees in APR: $501
 
 
30 yr fixed mtg refi Mortgage Loan from Santander Bank, N.A.
Santander Bank, N.A.
300000
Refinance
4.306
4.250
USD
Santander Bank, N.A.
4.306%
5/23/2019
4.250%
at 0.000 pts
60 day lock rate
Est payment: $1,475.82
Fees in APR: $2,004
 
 
30 yr fixed mtg refi Mortgage Loan from The Washington Trust Company
The Washington Trust Company
300000
Refinance
4.030
4.000
USD
The Washington Trust Company
4.030%
5/21/2019
4.000%
at 0.000 pts
30 day lock rate
Est payment: $1,432.25
Fees in APR: $1,083
 
 
30 yr fixed mtg refi Mortgage Loan from United Bank
United Bank
300000
Refinance
4.149
4.125
USD
United Bank
4.149%
5/21/2019
4.125%
at 0.000 pts
30 day lock rate
Est payment: $1,453.95
Fees in APR: $865
 
 
30 yr fixed mtg refi Mortgage Loan from Liberty Bank
Liberty Bank
300000
Refinance
4.169
4.125
USD
Liberty Bank
4.169%
5/24/2019
4.125%
at 0.250 pts
60 day lock rate
Est payment: $1,453.95
Fees in APR: $814
 
 

Mortage Data Provided by Bankrate.com Many lenders have different rates on their own Websites than those posted on Bankrate.com. In order to get the Bankrate.com rate, please identify yourself as a Bankrate.com customer. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the lender you choose, please click here.

The rates above were collected by Bankrate.com on the dates specified. Rates are subject to change without notice and may vary from branch to branch. Rate/APR and terms may vary based on the creditworthiness of the individual and the extent to which the loan differs from the one used for Bankrate.com quotes. For criteria used in surveys of rates above, click here. These quotes are from banks, thrifts, and brokers, some of whom have paid for a link to their own Web site, where you can find additional information.





 
Author: Brian McKay
September 21st, 2016