Freddie Mac’s PMMS is due out tomorrow. Last week’s results came in at 5.05% for the 30 Year Fixed.
Last week’s rates were dominated by an absolutely brutal Tuesday trading session that significantly influenced the survey’s results. Since then, Wednesday and Thursday were a wash, +28bps and -25bps, respectively. We’ve then been on a Friday-Tuesday tear of +47bps, +19bps, and +25bps.
Current mortgage rates don’t truly exist in weekly surveys, but the PMMS is the closest thing to a national average rate that we’ll find.
Barring a huge reversal today, it wouldn’t surprise me to see the survey come in nearer to 4.875% than 5% for this week.
The Freddie Mac survey methodology is a little outdated–having a rate quote survey that allows respondents to participate on Monday OR Tuesday OR Wednesday is moderately useless in an Internet enabled era, but I digress.
Assuming that rates come in closer to 4.875% than last week’s 5%, it’s about a $2,400 swing over the first ten years. Here are the full numbers.
Assumptions
These are the values used in this loan comparison. To update any values, go here
| Comparison Term (Years): | 10 |
| Property Value: | $250,000.00 |
| FICO: | 720 |
| Input | Last_Week | Forecast |
|---|---|---|
| Loan Type | Conv | Conv |
| Loan Term (Years): | 30 | 30 |
| Loan Amount: | $200,000.00 | $200,000.00 |
| Interest Rate: | 5.00% | 4.875% |
| UFMIP: | 0.00% | 0.00% |
| MI Factor: | 0.00% | 0.00% |
| Closing Costs ($): | $0.00 | $0.00 |
| Closing Costs (%): | 0.700% | 0.700% |
Monthly Analysis
Based on the information provided, this table shows the monthly payments for principal, interest, and mortgage insurance
(if applicable).
| Loan & Payment Summary | Last_Week | Forecast |
|---|---|---|
| P&I Payment | $1,073.64 | $1,058.42 |
| Mortgage Insurance | $0.00 | $0.00 |
| Monthly Payment | $1,073.64 | $1,058.42 |
| Monthly Savings | $0.00 | $15.23 |
| Total Loan Amount: | $200,000.00 | $200,000.00 |
Full Mortgage Analysis
Over the comparison term of 10 years, this table reviews the true cost of the loan over time in a way that monthly payments cannot. We remove the principal portions of payments to isolate the cost of interest, mortgage insurance, and any closing costs to calculate the total cost over time.
| Real Cost Analysis | Last_Week | Forecast |
|---|---|---|
| Total Payments | $128,837.19 | $127,009.97 |
| Principal Payments | $37,315.87 | $37,932.17 |
| Interest & MI Payments | $91,521.00 | $89,077.00 |
| Remaining Balance | $162,684.13 | $162,067.83 |
| Total Cost | $92,921.00 | $90,477.00 |
| Total Savings | $0.00 | $2,444.00 |