Home Loan ‘Interest Rates’ Back on Free Fall

Mortgage rates declined this week, giving a boost to buyer affordability, Freddie Mac reports in its weekly mortgage market survey.

Since the beginning of this year, 30-year rates have fallen nearly 40 basis points, “helping housing markets sustain their momentum in this year,” says Sean Becketti, Freddie Mac’s chief economist. The National Association of REALTORS® reported this week that existing-home sales had increased 4 percent in February over January and are up 11 percent from last year.

Freddie Mac reports the following mortgage rates for the week ending Feb. 25:

  • 30-year fixed-rate mortgages: averaged 3.62 percent, with an average 0.6 point, dropping from last week’s 3.65 percent average. Last year at this time, 30-year rates average 3.80 percent.
  • 15-year fixed-rate mortgages: averaged 2.93 percent, with an average 0.5 point, falling from last week’s 2.95 percent average. A year ago, 15-year rates averaged 3.07 percent.

Source: Freddie Mac

“Rates Ring in the New Year” near Record Lows!

Fixed-rate mortgages are averaging near record lows, keeping home buyer affordability high, Freddie Mac reports in its weekly mortgage market survey.

“Mortgage rates started the year near record lows, which should continue to aid the ongoing housing recovery,” says Frank Nothaft, Freddie Mac’s chief economist. 

Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 3: 

  • 30-year fixed-rate mortgages: averaged 3.34 percent, with an average 0.7 point, dropping from last week’s 3.35 percent average. The record low for 30-year mortgages is 3.31 percent, which was set in November. A year ago, 30-year rates averaged 3.91 percent. 
  • 15-year fixed-rate mortgages: averaged 2.64 percent, with an average 0.7 point, dropping from last week’s 2.65 percent average. The record low for 15-year mortgages is 2.63 percent, also set in November. Last year at this time, 15-year rates averaged 3.23 percent. 
  • 5-year adjustable-rate mortgages: averaged 2.71 percent, with an average 0.6 point, rising from last week’s 2.70 percent average. Last year at this time, 5-year ARMs averaged 2.86 percent. 

Source: Freddie Mac

Current Loan Rates stay low, “Near Record Levels”

Home loan interest rates  continue to hover near their record lows, keeping home buyer affordability high, Freddie Mac reports in its latest weekly survey.

“Mortgage rates were little changed and near record lows this week amid indicators of stronger economic growth and signs of tame inflation,” says Frank Nothaft, Freddie Mac’s chief economist.

The following are national averages on mortgage rates for the week ending Dec. 6, according to Freddie Mac:

•30-year fixed-rate mortgages: averaged 3.34 percent, with an average 0.7 point, rising from last week’s 3.32 percent average. The record low for 30-year rates was set last month, averaging 3.31 percent. A year ago, 30-year rates averaged 3.99 percent.

•15-year fixed-rate mortgages: averaged 2.67 %, with an average 0.6 point, rising from last week’s 2.64 % average. The record low for 15-year rates was also set last month, averaging 2.63 %. Last year at this time, 15-year rates averaged 3.27 %.

•5-year adjustable-rate mortgages: averaged 2.69 %, with an average 0.6 point, dropping from last week’s 2.72 % average. A year ago, 5-year ARMs averaged 2.93 %.

Source: Freddie Mac

Mortgage Rates remain at “Record Lows”

Good news to share! Home buying got even more affordable this week as mortgage rates continue to ride low, breaking records, and increase home buyer affordability.

For the fourth consecutive week, 30-year fixed-rate mortgages, the most popular choice of borrowers, reached a new all-time low while 15-year fixed-rate mortgages held steady at its all-time low set last week, reports Freddie Mac’s weekly mortgage market survey.

“Mortgage rates were virtually unchanged this week with fixed-rate loans remaining at record lows and helping to drive home buyer affordability,” Frank Nothaft, Freddie Mac’s chief economist.

Indeed, housing affordability reached an all-time record high in the first quarter, according to the National Association of REALTORS®’ Housing Affordability Index.

Here’s a closer look at how mortgage rates fared for the week ending May 24:

30-year fixed-rate mortgages: averaged a new record of 3.78 percent, with an average 0.8 point, dropping from last week’s previous record low of 3.79 percent. A year ago at this time, 30-year rates averaged 4.60 percent.

15-year fixed-rate mortgages: averaged 3.04 percent, with an average 0.7 point, holding steady at the record low it set last week. Last year at this time,  3.78 percent.

5-year adjustable-rate mortgages: averaged 2.83 percent, with an average 0.6 point, also unchanged from last week’s average. Last year at this time, 3.41 percent.

Source: Freddie Mac

How Low will Mortgage Rates Go?

Fixed-rate mortgages reached new all-time records lows, offering another big boost to home buyer affordability. Many believe rates will start increasing. Your guess? 

The 30-year fixed-rate mortgage averaged 3.83 percent for the week ending May 10, posting a new record low from last week’s 3.84 percent average. The 15-year fixed-rate mortgage also posted a new record, averaging 3.05 percent this week.

Here’s a closer look at mortgage rates for the past week:

30-year fixed-rate mortgages: averaged 3.83 percent, with an average 0.7 point, down from last week’s previous record of 3.84 percent. A year ago at this time, 30-year mortgages averaged 4.63 percent. The 30-year fixed-rate mortgage, the most popular choice among home buyers, has averaged below 4 percent for nearly every week — except for one — since Dec. 8, 2011, according to Freddie Mac.

15-year fixed-rate mortgages: averaged 3.05 percent, with an average 0.7 point, dropping from last week’s previous record low of 3.07 percent. Last year at this time, the 15-year fixed-rate mortgage averaged 3.82 percent.

5-year adjustable-rate mortgages: averaged 2.81 percent, with a 0.5 point, dropping from last week’s 2.85 percent average. Last year, 5-year ARMs averaged 3.41 percent.

Source: Freddie Mac

Home Mortgage Rates End the Year near “Record Lows”

Home buyer affordability continues to be pushed higher due to mortgage rates remaining at record lows, Freddie Mac reports in its weekly mortgage market survey. 

“Mortgage rates ended the year hovering near historic lows in an already affordable housing market,” Frank Nothaft, Freddie Mac’s chief economist, said in a statement.  With affordability so high, Nothaft notes “it’s not surprising then that over 5 percent of households in December plan to purchase a home over the next six months, the highest share since May,” according to The Conference Board. 

For the ninth consecutive week, 30-year fixed-rate mortgages, the most popular choice among home buyers, have been at or below 4 percent. In fact, only twice this year did 30-year rates average above 5 percent, Freddie Mac reports. 

Here’s a closer look at rates for the week ending Dec. 29.

  • 30-year fixed-rate mortgages: averaged3.95 percent, with an average 0.7 point, inching up from last week’s all-time record–a 3.91 percent average. A year ago at this time, 30-year rates averaged 4.86 percent. 
  • 15-year fixed-rate mortgages: averaged 3.24 percent, with an average 0.8 point, also up slightly compared to last week’s record 3.21 percent average. Last year at this time, 15-year rates averaged 4.20 percent.
  • 5-year adjustable-rate mortgages: averaged 2.88 percent, with an average 0.6 point, increasing from last week’s 2.85 percent average. Last year at this time, the 5-year ARM averaged 3.77 percent. 
  • 1-year ARMs: averaged 2.78 percent, with an average 0.6 point, slightly up from last week’s 2.77 percent average. A year ago, 1-year ARMs averaged 3.26 percent. 

 Source: Freddie Mac

 More news from the “Sierra Foothills” of El Dorado, Placer, Amador and Sacramento Counties of California at: www.sierraproperties.com or www.dougandbudzeller.com

‘Double Dip’ in Housing Is Unlikely

Freddie Mac continues to sound optimism about the housing market for the second half of 2011. In its latest economic and housing market outlook report, Freddie Mac says that the housing market is unlikely to experience a “double dip” and home sales are projected to reach above last year’s pace by 3 percent to 5 percent. 

Despite an unemployment rate that sits at 9.2 percent, Freddie Mac says the gloomy job picture reflects a temporary “soft patch” in the economy and “does not foreshadow an inflection point in gross domestic product growth.”

Freddie Mac forecasts that the housing market “will likely follow the performance of the overall economy for the remainder of 2011.”

Rental housing will likely see the largest growth. Freddie Mac’s first-quarter apartment property price index rose 15.2 percent compared to last year.

While home buyer affordability is at record levels and mortgage rates are at historical lows, households are still putting off major purchases like buying a home, according to the report. In our Placerville, California region we are seeing more positive activities. 

More at: “Freddie Mac Says Housing Sector Unlikely to See Double Dip,” HousingWire (July 18, 2011) and “July 2011 U.S. Economic and Housing Market Outlook,” Freddie Mac (July 18, 2011)