Mortgage Rates End Six-Week Streak of Record Lows

After six consecutive weeks of reaching all-time record lows, fixed-rate mortgages reversed course this week, starting to inch upwards, Freddie Mac reports in its weekly mortgage market survey.

Despite the slight uptick in fixed-rate mortgages this week, however, rates “remain near historic lows helping to keep home buyer affordability high, and providing a strong incentive for those looking to refinance,” according to Freddie Mac.

Here’s a closer look at rates for the week ending June 14:

30-year fixed-rate mortgages: averaged 3.71 percent, with an average 0.7 point, up from last week’s record setting average of 3.67 percent. A year ago at this time, 30-year rates averaged 4.50 percent.
15-year fixed-rate mortgages: averaged 2.98 percent, with an average 0.7 point, also inching up after its record setting average last week of 2.94 percent. Last year at this time, 15-year rates averaged 3.67 percent.
5-year adjustable-rate mortgages: averaged 2.80 percent this week, with an average 0.6 point, dropping from last week’s 2.84 average. Last year at this time, 5-year ARMs averaged 3.27 percent.
1-year ARMs: averaged 2.78 percent this week, with an average 0.5 point, dropping slightly from last week’s 2.79 percent average. A year ago, 1-year ARMs averaged 2.97 percent.

Source: Freddie Mac)
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Mortgage Rates Sink to New Records Once Again

For the third-straight week, fixed-rate mortgages reached new record lows, pushing home affordability even higher for those who can qualify.

“The European debt crisis overshadowed improving economic indicators for the U.S. and allowed Treasury bond yields and fixed mortgage rates to ease for another week,” Frank Nothaft, Freddie Mac’s chief economist, said in explaining why mortgage rates continue to inch down.

Here’s a closer look at how rates fared for the week ending May 17, according to Freddie Mac’s weekly mortgage market survey:

30-year fixed-rate mortgages: averaged a new record low of 3.79 percent this week, with an average 0.7 point, down from last week’s previous record of 3.83 percent. Thirty-year mortgage rates have been below 4 percent since December. A year ago at this time, 30-year fixed-rate mortgages averaged 4.61 percent.
15-year fixed-rate mortgages: also dipped to new record lows this week, averaging 3.04 percent, with an average 0.7 point, dropping from last week’s previous record of 3.05 percent. Last year at this time, 15-year fixed-rate mortgages averaged 3.80 percent.
5-year adjustable-rate mortgages: averaged 2.83 percent, with an average 0.6 point, rising slightly from last week’s 2.81 percent average. Last year at this time, 5-year ARMs averaged 3.48 percent.
1-year ARMs: averaged 2.78 percent, with an average 0.5 point, also up slightly from last week’s 2.73 percent average. A year ago at this time, 1-year ARMs averaged 3.15 percent.

Source: Freddie Mac

Mortgage Rates Inch Up for the Week

After reaching or hovering near all-time lows last week, fixed-rate mortgages edged up slightly during the week, Freddie Mac reports in its weekly mortgage market survey. The 5-year adjustable-rate mortgage, however, hit a new all-time low of 2.78 percent this week.

Here’s a closer look at average mortgage rates from Freddie Mac for the week ending April 19:

30-year fixed-rate mortgages: averaged 3.90 percent, with an average 0.8 point, up slightly from last week’s 3.88 percent average. A year ago at this time, 30-year rates averaged 4.80 percent.
15-year fixed-rate mortgages: averaged 3.13 percent, with an average 0.7 point, rising after last week’s all-time low of 3.11 percent. Last year at this time, 15-year rates averaged 4.02 percent.
5-year ARMs: averaged a new all-time low of 2.78 percent this week, with an average 0.7 point, dropping from last week’s 2.85 percent average. The 5-year ARMs previous record low was 2.80 percent, which was reached during the first week of February. Last year at this time, 5-year ARMs averaged 3.61 percent.
1-year ARMs: averaged 2.81 percent, with an average 0.6 point, rising slightly from last week’s 2.80 percent average. A year ago at this time, 1-year ARMs averaged 3.16 percent.

Source: Freddie Mac
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Mortgage Rates Drop Closer to All-Time Lows

After rising last week following positive housing indicators, mortgage rates fell back near all-time lows once again this week, Freddie Mac reports in its weekly mortgage market survey.

“Fixed mortgage rates bottomed out in January and February of this year, which is helping spur the housing market,” said Frank Nothaft, Freddie Mac’s chief economist.

This week, the National Association of REALTORS® reported that pending home sales increased in January, reaching its strongest pace since April 2010. The Federal Reserve also noted that real estate activity in the residential sector increased modestly in most of the districts it tracks and that home sales increased.

Here’s a closer look at rates for the week ending March 1, 2012:

30-year fixed-rate mortgages: averaged 3.90 percent, with an average 0.8 point, dropping from last week’s 3.95 percent average. A year ago at this time, 30-year rates averaged 4.87 percent.
15-year fixed-rate mortgages: averaged 3.17 percent, with an average 0.8 point, dropping from 3.19 percent last week. Last year, 15-year rates averaged 4.15 percent.
5-year adjustable-rate mortgages: averaged 2.83 percent, with an average 0.7 point, rising from last week’s 2.80 percent average. Last year, 5-year ARMs averaged 3.72 percent.
1-year ARMs: averaged 2.72 percent, with an average 0.6 point, this week, dropping slightly from last week’s 2.73 percent average. A year ago, 1-year ARMs averaged 3.23 percent.

Source: Freddie Mac

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Mortgage Rates Inch Up After Record Lows

For the first time in three weeks, fixed mortgages rate moved up from their all-time lows, Freddie Mac reports in its weekly mortgage market survey.

One of the factors leading to higher fixed mortgage rates this week was signs of a gradually improving housing market, Freddie Mac Chief Economist Frank Nothaft says. For example, the Mortgage Bankers Association reported this week that seriously delinquent loans — those 90 days or more past due — and the inventory of foreclosures dropped 5.3 percent by the end of 2011, marking the lowest quarterly share since the beginning of 2009. Also, the National Association of REALTORS® reported this week that existing-home sales in January were at their strongest pace since May 2010.

Here’s a closer look at how rates fared for the week ending Feb. 23:

30-year fixed-rate mortgages: averaged 3.95 percent, with an average 0.8 point, up slightly from last week’s all-time low of 3.87 percent. A year ago, 30-year rates averaged 4.95 percent.
15-year fixed-rate mortgages: averaged 3.19 percent, with an average 0.8 point, inching up from last week’s 3.16 percent average. Last year, 15-year rates averaged 4.22 percent at this time.
5-year adjustable-rate mortgages: averaged 2.80 percent this week, with an average 0.7 point, dropping from last week’s 2.82 percent average. Last year, 5-year ARMs averaged 3.80 percent at this time.
1-year ARMs: averaged 2.73 percent, with an average 0.6 point, also dropping from last week’s 2.84 percent average. A year ago at this time, 1-year ARMs averaged 3.40 percent.

Source: Freddie Mac

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Mortgage Rates Hit New Lows Again

Mortgage rates once again inched lower this week, lowering the cost of borrowing and increasing housing affordability.

“Most mortgage rates eased to all-time record lows this week as fourth quarter growth in the economy fell short of market projections,” Frank Nothaft, Freddie Mac’s chief economist, said in a statement.

Here’s a closer look at rates for the week ending Feb. 2:

30-year fixed-rate mortgages: averaged a new record low of 3.87 percent, with an average 0.8 point, dropping from last week’s 3.98 percent average. A year ago at this time, 30-year rates averaged 4.81 percent.
15-year fixed-rate mortgages: also reached new lows this week, averaging 3.14 percent, with an average 0.8 point. Last week, 15-year rates averaged 3.24 percent and a year ago at this time 15-year rates averaged 4.08 percent.
5-year adjustable-rate mortgages: averaged 2.80 percent, with an average 0.7 point, dropping from last week’s 2.85 percent average. Last year at this time, 5-year ARMs averaged 3.69 percent.
1-year ARMs: averaged 2.76 percent this week, with an average 0.6 point, inching up slightly from last week’s 2.74 percent average. A year ago, 1-year ARMs saveraged 3.26 percent.

Source: Freddie Mac

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Mortgage Rates Rise After Posting Record Lows

Mortgage rates started to edge higher this week, after a series of recent positive reports showing the housing market on the mend, Freddie Mac reported in its weekly mortgage market survey.

The 30-year fixed-rate mortgage after posting all-time record lows for the past three weeks reversed course this week and ticked up to 3.98 percent. Still, this is the eighth consecutive week that 30-year fixed-rate mortgages have remained below 4 percent, Freddie Mac reported.

“Fixed mortgage rates ticked up this week as the housing market ended 2011 on a high note,” Frank Nothaft, Freddie Mac’s chief economist, said in a statement. Existing-home sales increased 5 percent in December, the largest amount since May 2010.

Here’s a closer look at mortgage rates for the week ending Jan. 26:

30-year fixed-rate mortgages: averaged 3.98 percent, with an average 0.7 point, up from last week’s low of 3.88 percent. A year ago at this time, 30-year rates averaged 4.80 percent.
15-year fixed-rate mortgages: averaged 3.24 percent, with an average 0.8 point, inching up after last week’s 3.17 percent average. Last year at this time, 15-year rates averaged 4.09 percent.
5-year adjustable-rate mortgages: averaged 2.85 percent, with an average 0.7 point, also up from last week’s 2.82 average. Last year at this time, 5-year ARMs averaged 3.70 percent.
1-year ARMs: averaged 2.74 percent this week, with an average 0.6 point–holding at last week’s 2.74 percent average. A year ago at this time, 1-year ARMs averaged 3.26 percent.

Source: Freddie Mac

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How Long Will Low Mortgage Rates Last?

For nine consecutive weeks, the 30-year fixed-rate mortgage has been hovering at or below record lows of 4 percent, pushing housing affordability for home buyers even higher.

But will these low rates stick around much longer?

The Federal Reserve has vowed to keep rates low through 2013 so rates likely will hang around for a few more months, at least, but whether mortgage rates will stay at the current record-lows, many experts say it’s unlikely.

The 30-year fixed-rate mortgage is expected to inch up to an average 4.5 percent for 2012 and increase to 5.4 percent in 2013, according to Freddie Mac economists’ forecasts.

While that forecast means rates are expected to move higher in the coming months, the rates will still be low by historical standards, economists told the Los Angeles Times. For comparison, 30-year rates averaged more than 16 percent in 1981 and 1982. What’s more, until 2000, rates typically were above 8 percent, Freddie Mac notes.

Despite the drop in rates, however, many home buyers have been unable to take advantage of the low rates. Lenders’ tightening of their underwriting standards for loans in the recent years following the housing crisis has shut some buyers who have poor credit, low down payments, or unsteady employment from securing a loan at today’s low rates. Freddie Mac had predicted home-purchase applications to comprise two-thirds of all mortgage applications by the end of 2011. But the Mortgage Bankers Associations says that instead about 80 percent of the mortgage applications came from home owners who wanted to refinance.

Source: “Low Mortgage Rates Likely to Continue Through 2012, Experts Say,” Los Angeles Times (Jan. 3, 2012)

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Study: Women Get Worse Mortgage Rates Than Men

Women aren’t getting the best mortgage rate when getting a loan compared to men, but it’s not because of gender discrimination. It’s because women aren’t doing enough shopping when it comes to mortgage rates, a new study published in the Journal of Real Estate Finance and Economics finds.

Women tend to rely on recommendations from their friends when it comes to mortgage rates, while men are more likely to shop around and talk to several lenders in finding the best rate, the researchers note.

Researchers aimed to shed light on why a 2006 study found that women are 32 percent more likely to get a subprime mortgage than men.

Researchers suggest that “gender disparity in mortgage rates may be addressed by policies aimed at improving women’s financial literacy and search skills.”

Source: “When it Comes to Mortgages, Women Don’t Shop Enough,” AOL Real Estate (Nov. 18, 2011)

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Mortgage Rates Drop Sharply This Week

The 30-year fixed-rate mortgage, the most popular choice among home buyers, dropped to its second lowest reading on record this week, Freddie Mac reports in its weekly mortgage market survey.

“Market concerns over the European debt market drew investors to U.S. Treasury securities, lowering bond yields and mortgage rates,” says Frank Nothaft, chief economist at Freddie Mac.

Here are how rates fared for the week:

30-year fixed-rate mortgages: averaged 4 percent, with an average 0.7 point, down from last week’s 4.10 percent average. The 30-year fixed-rate mortgage is the second lowest on record, just behind the 3.94 percent record reached on Oct. 6. A year ago at this time, 30-year rates averaged 4.24 percent.
15-year fixed-rate mortgages: averaged 3.31 percent, with an average 0.7 point, falling from last week’s 3.38 percent average. Last year at this time, 15-year mortgages averaged 3.63 percent.
5-year adjustable-rate mortgages: averaged 2.96 percent this week, with an average 0.6 point, dropping from last week’s 3.08 percent. At this time last year, 5-year ARMs averaged 3.39 percent.
1-year ARMs: averaged 2.88 percent this week, with an average 0.6 point, dropping from last week’s 2.90 percent average. A year ago at this time, the 1-year ARM averaged 3.26 percent.

Source: Freddie Mac

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