The average fixed mortgage rate dropped again last week, according to the Primary Mortgage Market Survey® (PMMS®), providing more buying power and incentive if you arelooking at home buying in Brambleton which is part of Ashburn, VA in Loudoun County.
The 30 year fixed decreased to an average 3.41% with a 0.7 point (last year’s same date comparison was at 3.90%). The 15 year fixed rate mortgage dropped, as well, down to 2.64% with a 0.7 point (last year the 15 year FRM was at 3.13%). One point up or down in interest rates directly effects the affordability of a home by 10%. An example would be if interest rates go up, a $400,000 purchase would be like a $450,000 purchase. This would increase your mortgage about $300.00 per month and potentially some buyers may then not be able to qualify.
Adjustable rate mortgages fluctuated as well, with the 5-year Treasury-indexed hybrid adjustable averaging at 2.60% (0.5 point), down from an average 2.62% from the previous week. The 1-year Treasury-indexed ARM increased a tenth of a percentage to 2.63% (0.4 point).
Frank Nothaft, vice president and chief economist of Freddie Mac, explained the changes and low interest rates, saying, “Mortgage rates nudged lower this week as consumer spending showed signs of weakness. Retail sales contracted for the second time in three months, falling 0.4 percent in March. In addition, the University of Michigan reported their Consumer Sentiment Index dropped 6.3 points in April to settle at 72.3, its lowest level since July. The April reading snapped a streak of three consecutive gains.”
Low interest rates make it the prime time to lock in a mortgage rate and find your home. If you have been thinking about buying or selling your home in Ashburn, VA, give me a call so we can assess your needs and qualifications, to get you in your home as soon as possible.