Entries posted in July, 2010
The average 30-year and 15-year fixed rate mortgage hit yet another all-time low this week. According to Freddie Mac’s weekly survey, the average 30-year fixed rate mortgage rate wa 4.56 percent with 0.7 points. This was down from an average of 4.57 percent last week. One year ago, the average 30-year fixed rate was 5.20 percent.
The average 15-year fixed rate mortgage also fell to a new low this week. The average rate for a 15-year fixed mortgage was 4.03 percent with an average of 0.7 points. This was down from last week’s average of 4.06 percent. One year ago, the average 15-year fixed rate was 4.68 percent.
Freddie Mac’s chief economist, Frank Nothaft, attributed the further decline in mortgaeg rates over the past few weeks to a lack of confidence in the economy. However, he attributes this lack of confidence to the normal ebbs and flows of a recovering ecomony and does believe that there is sufficient momentum in the economy to move it forward.
Are Jumbo Loans Available?
Falling real estate prices in some of the country's ritziest areas, and super low mortgage rates, may have you wondering whether the time is right to purchase a new home. However, concern over whether jumbo financing is available may have you thinking twice about looking in that price range. Though mortgage lending is still restrained, jumbo loans are readily available, meaning it might be possible to find and finance your luxury dream home at a bargain.
The term "jumbo loan" refers to any mortgage with a loan amount greater than the conforming limits, currently $417,000 in most areas, and ranging to as high as $729,750 in parts of the country where real estate is especially expensive. Jumbo mortgage rates are likely to be somewhat higher than conforming loans due to the increased risk of financing a higher loan amount and decreased interest among investors in the secondary market, but they are still incredibly low. As of this writing advertised prices for a 30-year fixed rate loan with no points range from 4.75% to 5.75% (see terms of each lender for details.)
In order to qualify for the best pricing on a jumbo loan, you will want your mortgage application to be as strong as possible. This means having an excellent credit history, enough income to comfortably afford the loan payment and all other obligations, enough assets to cover several months worth of expenses were you to have an interruption in income, and a good amount of equity in the property either through a down payment or by only refinancing a percentage of the home's value.
If you currently have a jumbo loan you may want to look into refinancing to get a lower rate or switch from an adjustable rate mortgage (ARM) to a fixed rate loan. You might even consider shortening the term of your mortgage by taking out a 15-year jumbo loan. If a low monthly payment is a top priority a 3 year jumbo ARM might make the most sense, though it's important to understand that with an ARM your payment can increase after the initial fixed rate period.
About the Author
Anna Platz has worked in the mortgage industry for 8 years, most recently for a large national mortgage lender. She is currently a marketing consultant at Wilmington SEO and Marketing, Inc., a national search engine optimization and marketing firm based in Wilmington, North Carolina. WSEO specializes in real estate and mortgage seo services providing excellent search engine results for large and small companies.
Fixed rate mortgages remained at last week's historic lows this week. According to Freddie Mac’s Weekly Survey, this week’s average 30-year fixed mortgage rate tied last week’s record low. The average rate was 4.57 percent with 0.7 points this week, tying last week’s all-time low. One year ago, the 30-year fixed rate was 5.14 percent.
The average 15-year fixed rate mortgage was 4.06 percent with an average of 0.7 points this week. This was down slightly from last week when the average was 4.07 percent. One year ago, the 15-year fixed rate was 4.63 percent.
With overall rates being at 50-year lows, refinancing activity has been brisk over the past month. Approximately 80% of conventional loan applications have been to refinance existing loans
The average 15-year fixed rate mortgage was up slightly this week. This week’s average 15-year fixed mortgage rate was 4.07 percent with an average 0.7 points. Last week’s average was 4.04 percent. One year ago, the 15-year fixed rate mortgage averaged 4.69 percent.
With rates continuing to sink to historic lows, refinance activity has been up sharply over the past three months with 2 out of every 3 mortgage applications being for refinancing of existing loans.
The average for 15-year fixed rate mortgages was 4.04 percent with an average 0.7 points for the week ending July 1, 2010. This was down from the prior week when the average was 4.13 percent. One year ago, the 15-year FRM averaged 4.77 percent.
Home prices improved between March and April 2010. This was in large part due to the homebuyer tax credit. According to the S&P/Case-Shiller 20-city home price index, the 0.4 percent improvement between March and April was the largest improvement since October 2006.