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Mortgage rates remain the same for the week of August 25, 2014

Posted by  on Sep 02, 2014
 

Back in June, in an article headlined "Re-opening the refinance window," ShopRate.com made a prescient prediction: "Now, however, with mortgage rates headed lower again, the refinancing window may be opening once more."

Home refinance boom

That forecast, it now turns out, struck a highly accurate blow to the top of the unthreaded fastener -- or hit the nail on the head, if you prefer. The Mortgage Bankers Association reports that, during the week ending August 22, applications for home refinances jumped 3 percent on the previous seven days to constitute a whopping 56 percent of all applications, its biggest share for many months.

And that was in spite of a similar, seasonally adjusted rise in people applying for home loans to make purchases. With most current mortgage rates hardly shifting since then, you might expect the refinancing boom to continue, alongside growing purchase applications.

Refinancing and equity

That June article went on to stress the importance of existing home prices in your area to your refinancing plans. Although rises in prices in recent years have rescued millions of homeowners whose mortgages were previously under water (were in "negative equity," meaning their outstanding balance owed was higher than the market value of the home), there are still plenty left in that position.

And for them, the refinancing window likely remains closed. If you're among them, it's essential you continually monitor prices in your neighborhood. The moment these rise enough for your home loan to surface, and for you to have positive equity, you need to be ready to act.

This week's mortgage rates in detail

By Friday, August 29, the average rate for 30-year fixed-rate mortgages (FRMs) had crept up by just a single basis point (0.01 percent) to 4.17 percent from 4.16 percent the previous week, according to HSH.com. This tiny difference was made even less significant by falling points: They were down to 0.14 from 0.18. Rates for 15-year FRMs also showed little change, ending the week at 3.45 percent, up from 3.43 percent, though points for these actually inched up, to 0.12 from 0.11.

The frequently more volatile market for adjustable-rate mortgages (ARMs) provided the only fireworks. The average rate for a 30-year 1/1 ARM stood at 2.65 percent on Friday, having tumbled 9 basis points from 2.74 percent a week earlier. Points for these held steady at 0.16.

Whether you are thinking of buying a home or taking advantage of the still wide-open refinancing window, our live database of current mortgage rates can help you find the best mortgage rates in your area.

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