Contra Costa County Mortgage Rates Dip Going Into August 2016

Contra Costa County mortgage rates declined a bit during the week ending August 5, 2016. This is based on the weekly mortgage market survey conducted by Freddie Mac. Rates dropped across all three of the loan categories tracked by Freddie Mac, including the 5/1 ARM loan, the 15-year fixed, and the 30-year fixed mortgage.

Here are the average rates reported by Freddie Mac earlier this week:

• 30-year fixed: 3.43%
• 15-year fixed: 2.74%
• 5/1 ARM loan: 2.73%

Borrowers who got these rates paid an average of 0.5 points at closing. Just bear in mind that these are average trends. Rates vary based on a variety of factors, including geography, specific loan features, and borrower qualifications.

Contra Costa Mortgage Rates Trends: August 2016

On average, Contra Costa mortgage rates have been hovering below 4% all year. This is partly the result of the Federal Reserve’s current monetary policy, which is holding the shorter-term federal funds rate near 0%. While the Fed does not control mortgage rates directly, its policies do have an influence on the bond market and the lending industry.

In July, during one of their regularly scheduled meetings, Federal Reserve officials “decided to maintain the target range for the federal funds rate at 1/4 to 1/2 percent.” In other words, they decided not to raise rates this time around. But there is some speculation that they could announce a rate hike in September, during their next scheduled meting.

The chart below (courtesy of Freddie Mac) was published during the first week of August, along with the latest mortgage market survey results. While it’s based on national trends, this chart is a pretty good indication of what Contra Costa mortgage rates have been doing as well.

The bottom line is that home buyers and homeowners in Contra Costa County can lock in some great mortgage rates these days. That’s where we are right now. As for what might happen down the road, I’ll defer to the economists on that one…

Forecast and Outlook for 2016 – 2017

In July of 2016, the Mortgage Bankers Association issued their latest forecast for mortgage rates, extending through the end of 2017. Here are their quarterly predictions for average 30-year loan rates, between now and the end of next year.

Q2, 2016: 3.6%
Q3, 2016: 3.6%
Q4, 2016: 3.8%
Q1, 2017: 4.0%
Q2, 2017: 4.1%
Q3, 2017: 4.3%
Q4, 2017: 4.4%

According to its July forecast, the MBA anticipated that the average rate for a 30-year fixed home loan would rise slightly by the end of this year. They expect it to continue inching upward in 2017 as well.

Also in July, Freddie Mac offered a mortgage rate forecast that was similar to the MBA’s outlook shown above. The company stated: “we have also lowered our 30-year fixed-rate mortgage forecast for both 2016 (by 30 basis points) and 2017 (by 50 basis points) to 3.6 percent and 4.0 percent, respectively.” That means they expect rates to be slightly higher in 2017, on average, than in 2016.

Request a Rate Quote Today

Bridgepoint Funding is a Contra Costa County mortgage company located in Walnut Creek. Our knowledgeable team has decades of combined lending experience. We offer a variety of mortgage options, including FHA, conventional, fixed, ARM, etc. And we’re happy to answer any questions you have about getting a home loan.

Rate quotes: If you’d like to know what kind of mortgage rate you qualify for, please contact us today. You can even request a quote online, through our website. We look forward to helping you.

Disclaimer: This article includes mortgage rate forecasts and predictions from third-party sources not associated with our company. We have simply compiled this information as a service to our readers. Mortgage rates tend to vary based on geography, loan features, and credit qualifications.