You will never get that mortgage rate you see in your news feed. Ever. But, don’t be mad.
Here’s the story.
Each week, the government-backed agency Freddie Mac surveys more than 100 U.S. mortgage lenders about their current interest rates. Then, two days later, the group publishes the results in a report called the Primary Mortgage Market Survey (PMMS).
The Primary Mortgage Market Survey releases each Thursday at 10:00 AM ET and, in the most recent report, interest rates were shown as:
- 30-year fixed-rate: 3.65 percent
- 15-year fixed-rate: 3.14 percent
- 5-year ARM: 3.38 percent
These rates aren’t real interest rates, mind you. They’re not available from a lender or anything. They’re average interest rates and they’re based on some pretty aggressive assumptions about you.
First, there’s the assumption that you’ll be willing to pay extra closing costs in order to access to lower rates. You might not want to do that (and you definitely shouldn’t make up your mind on that today).
Then, there are the other assumptions:
- That you’ll make a down payment of twenty percent
- That your credit rating is top-tier
- That you’re buying an actual house and not a condominium or multi-unit property
Also, there’s the assumption that you’ll use a 30-year fixed rate mortgage; and, that your loan will be “backed” by Freddie Mac; and, that you’ll close within the next 30 days on the calendar.
It’s a lot of assumptions!
But, for argument’s sake, let’s say you do meet the criteria for the Freddie Mac survey. The rates still won’t apply to you because mortgage rates vary by state and the survey compiles data from all 50 states.
Interest rates in Florida aren’t the same as interest rates in Texas.
More than a dozen factors go into your interest rates, so when you’re ready for an actual rate quote, ask your lender for something personalized.
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When your lender says, “you have to act quickly” is not some high-pressure sales tactic meant to make you feel fear. It’s the truth.