Entries posted in May, 2010

Mortgage rates are at or near their historic lows.  The average 30-year fixed rate was 4.78 percent with an average of 0.7 points this week.  This was down from 4.84 percent last week.  This is the lowest rate for a 30-year fixed rate since December 3, 2009 when the average was 4.71 percent.  One year ago, the rate was 4.91 percent.

The average 15-year fixed rate was 4.21 percent with an average of 0.7 points.  This was down from 4.24 percent last week.  This rate has not been lower since rates were first being tracked in August of 1991.  One year ago, the 15-year fixed rate was 4.53 percent.

Sales in April for existing homes were up 7.6 percent and new home sales were up 14.8 percent, largely due to buyers wanting to take advantage of the home-buyer tax credit which expired last month.  However, even with the lack of a tax incentive, low interest rates are expected to continue to drive home sales in the short term.

Mortgage rates are expected to begin to rise within the next few months.

For more information on the latest mortgage rates in your local market, go to http://www.infotrak.com/Search-Local-Rates.html.

More good news on the mortgage front this week.  The average 30-year fixed mortgage rate this week was 4.84 percent with an average of 0.7 points.  This is down from last week when the average 30-year fixed rate was 4.93 percent.  One year ago, the average 30-year rate was 4.82 percent.  This week's rate is the lowest that it has been in almost six months.

The average 15-year fixed mortgage rate was 4.24 percent with 0.7 points.  This is down from last week when the average 15-year fixed rate was 4.30.  One year ago, the average 15-year rate was 4.5 percent.  This week's rate is the lowest that 15-year rates have been since Freddie Mac started tracking rates in August 1991.

The low mortgage rates, along with tax incentives, are credited with helping strengthen housing sales this year.  Construction of  new single-family residences was up for the fourth straight month in April reflecting the strongest pace since August 2008.

For more information on the latest mortgage rates in your local market, go to www.infotrak.com/search-local-rates.html.

If you are one of the holdouts that still hasn’t refinanced your mortgage loan, now may be the time.  Mortgage rates declined again this week and are now at or near their historic lows.  But don’t expect it to last. 
 

Fannie Mae predicts that mortgage rates will begin a slow and steady rise in the coming months that will continue through 2011. The prediction for the 30-year fixed rate in the 4^th quarter of 2010 is 5.4% (currently under 5 percent).  By the 4^th quarter of 2011, the rate is predicted to rise to 5.8%.
 

Fannie Mae also predicted a brighter economic picture, revising their annualized growth prediction for this year from 3.0-3.2% to 3.5% following positive signs in the job market and consumer spending in the first quarter.  However, housing prices are not expected to gain any ground due to a dip in demand following the expiration of tax incentives in June that have heretofore been used to prop up the market. 
 

Though the overall economic news and forecasts are positive, several risk factors are in play, namely the Gulf oil spill and the potential worldwide repercussions of the financial crisis in Greece.  But one thing is fairly certain.  Mortgage rates will never be better.  So if you’ve done the math and it makes sense to refinance your existing mortgage loan, don’t procrastinate any longer.
 

To check the latest mortgage rates in your area, click here. To figure out if you would be better off by refinancing your existing mortgage loan, click here.

Mortgage Rate Update Report

By Gary Sweatt, INFOTRAK National Data Services

Mortgage rates this week fell for the fifth straight week and are now at to the lowest level of the year.  According to Freddie Mac’s weekly survey, 30-year fixed rate mortgages averaged 4.93 percent with 0.7 points.  This was down from last week when the average 30-year rate was 5 percent.  One year ago, the average rate was 4.86 percent.  This week’s 30 year fixed rates are the lowest they have been since December 10^, 2009.

The 15-year fixed rate mortgage this week averaged 4.30 percent with an average 0.6 points.  This was also down from last week when it averaged 4.36 percent. One year ago, the average was 4.52 percent. This week’s 15-year fixed rates are at their lowest level since December 3, 2009. 

For more information on the latest mortgage rates in your local market, go to http://www.infotrak.com/Search-Local-Rates.html. 

Mortgage rates this week hit their lowest level since March. According to Freddie Mac’s weekly survey, the 30-year fixed-rate mortgage averaged 5.00 percent with an average of 0.7 points.  This was down from last week when it averaged 5.06 percent.  One year ago, the average 30-year fixed rate was 4.84 percent.   

The 15-year fixed rate mortgage averaged 4.36 percent with an average of 0.7 points this week.  This was down from last week when it averaged 4.39 percent.  Last year at this time the average 15-year fixed rate mortgage was 4.51 percent.

"Treasury bond and note yields declined this week, and rates on fixed-rate mortgages and hybrid ARMs followed suit," said Frank Nothaft, Freddie Mac vice president and chief economist. "Rates for both the 30-year and 15-year fixed-rate mortgages were the lowest in six weeks; initial rates on 5/1 hybrid ARMs hit an all-time low since they were added to the survey in the beginning of 2005.

"The homebuyer tax credit helped support home sales in March, and anecdotal reports point to strong April sales as well. Pending existing home sales rose for the second consecutive month in March to the strongest pace since October 2009, just before the original deadline for the credit, based on figures published by the National Association of Realtors®. Three of the four Census regions showed an up tick in sales, led by the South with a 12.7 percent gain, while sales in the Northeast fell 3.3 percent. To receive the federal tax credit, homebuyers had to sign contracts by April 30th and settle by June 30th of this year."

For more information on the latest mortgage rates in your local market, go to http://www.infotrak.com/Search-Local-Rates.html.

Low mortgage rates and low real estate prices in many areas of the country may have you wondering if the time is right to buy a home. As they consider purchasing real estate many first time homebuyers fear they won't have enough money for a down payment, that their credit score will be too low, or that they will be required to pay costly mortgage insurance. Thankfully these fears can often be put to rest by examining the terms of an FHA loan.

An FHA mortgage loan is backed by the Federal Housing Administration, an agency of the federal government. This means that if the borrower defaults on the mortgage loan and the lender is forced to foreclose on the property, they can collect on the mortgage insurance policy with the Federal Housing Administration for any losses they incur. This lowers the risk to mortgage lenders, enabling them to offer better rates and terms to borrowers.

FHA loans are not available to everyone - there are still guidelines that must be met in order to qualify, such as a minimum credit score, a minimum down payment, and adequate income and assets. The FHA watches default rates closely to be sure that when following these guidelines those who are most likely to repay their home loans are approved, and those who are likely to default are not.

The availability of FHA loans does not just benefit those borrowers who are able to purchase a home or refinance a home loan by taking out an FHA mortgage - the presence of these home loans allows more homes to be sold, strengthening the housing market and the overall economy. Even if you are not in the market for a new mortgage loan if you own a home and want the value to remain stable, or better yet to increase, it is important for other homes like yours to sell. Homes can only sell in large numbers when there is affordable home financing available to those who want to purchase them.

Some of the advantages to borrowers of an FHA loan include:

Low down payment. An FHA loan only requires that 3.5% of the purchase price be put down. The seller is also permitted to contribute to the down payment and other closing costs. This can be negotiated as an alternative to lowering the sales price to help the buyer purchase the home.