Mortgage Rates Staying Near Yearly Lows

Home buyers and owners can still lock in low mortgage rates. Freddie Mac reports in its weekly mortgage market survey that rates mostly remained unchanged this week.

“Volatility in financial markets subsided over the past week, allowing Treasury yields to stabilize,” says Sean Becketti, Freddie Mac’s chief economist. “As a result, the 30-year mortgage rate was mostly flat, up only 1 basis point to 3.59 percent. The release of March’s existing-home sales report, which shows monthly growth at 5.1 percent, suggests home buyers are taking advantage of low mortgage rates.”

Freddie Mac reports the following national averages for the week ending April 21:

30-year fixed-rate mortgages: averaged 3.59 percent, with an average 0.6 point, rising from last week’s 3.58 percent average. A year ago, 30-year rates averaged 3.65 percent.

15-year fixed-rate mortgages: averaged 2.85 percent, with an average 0.5 point, falling from last week’s 2.86 percent average. Last year at this time, 15-year rates averaged 2.92 percent.

Source: Freddie Mac

Home Loan Interest Rates Likely to Stay Low Longer?

The Federal Reserve once again decided not to raise the federal funds rate this month, saying the economy is still falling short of benchmarks. That likely means home buyers will be able to take advantage of lower mortgage rate for awhile longer too.

Federal Open Markets Committee members released a statement Wednesday that said in an effort to “support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that the current zero to one-quarter percentage target rate for the federal funds rate remains appropriate.”

The FOMC will not decide on a rate hike again until its next meeting in December. At that time, the FOMC says it will assess progress with labor conditions as well as inflation pressures and expectations in deciding whether to raise rates at that time.

Jonathan Smoke, realtor.com®’s chief economist, predicted earlier this week. “That decline was likely a result of the stock market declines in August and September,” he said. “If builders are not focusing on first-time buyers, they are focusing on the segments most likely to be disrupted by declines in stock portfolios and retirement plans.”

Source: “Fed Again Delays Interest Rate Hike,” HousingWire (Oct. 28, 2015) and “Fed Keeps Interest Rates at Record Lows,” The Associated Press (Oct. 28, 2015)

Home Loan ‘Interest Rates’ Stay Below 4%

Average fixed mortgage rates mostly stayed calm this week, ahead of the Federal Reserve’s vote on an interest-rate hike for the first time in more than nine years, Freddie Mac reports in its weekly mortgage market survey.

“The Treasury market was relatively quiet this week, and as a result the 30-year mortgage rate barely budged,” says Sean Becketti, Freddie Mac’s chief economist. “Low mortgage rates help to support housing markets, which continue to bring good news.”

Freddie Mac reports the following national averages for the week ending Sept. 17:

  • 30-year fixed-rate mortgages: averaged 3.91 percent, with an average 0.6 point, rising from last week’s 3.90 percent average. A year ago, 30-year rates averaged 4.23 percent.
  • 15-year fixed-rate mortgages: averaged 3.11 percent, with an average 0.6 point, inching up slightly from last week’s 3.10 percent average. Last year at this time, 15-year rates averaged 3.37 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.92 percent, with an average 0.5 point, increasing from last week’s 2.91 percent average. A year ago, 5-year ARMs averaged 3.06 percent.

Source: Freddie Mac

Sluggish Economy Pushes Mortgage Rates Lower

The average for fixed-rate mortgages fell this week on signs of a softening economy, Freddie Mac reports in its weekly mortgage market report.

Frank Nothaft, Freddie Mac’s chief economist, attributes the lower rates to a sluggish economy that added 74,000 jobs in December, which was less than the market consensus forecast. The unemployment rate remains high at 6.7 percent — but still it’s at its lowest level since October 2008, he notes.

Freddie Mac reports the following national averages for the week ending Jan. 16:

  • 30-year fixed-rate mortgages: averaged 4.41 percent, with an average 0.7 point, dropping from last week’s 4.51 percent average. Last year at this time, 30-year rates averaged 3.38 percent.
  • 15-year fixed-rate mortgages: averaged 3.45 percent, with an average 0.7 point, dropping from last week’s 3.56 percent average. A year ago, 15-year rates averaged 2.66 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.10 percent, with an average 0.5 point, falling from last week’s 3.15 percent average. Last year at this time, 5-year ARMs averaged 2.67 percent.

Source: Freddie Mac

Rapid Rise in Home Prices ‘Remarkable’

We’re seeing the Sacramento region leading this trend! During the first six months of this year, home prices jumped 10 percent, the fastest pace in 36 years, CoreLogic reports. Mark Fleming, chief economist with CoreLogic, called the 10 percent jump “remarkable.”

In June, the latest data available, home prices were up 11.6 percent year over year, according to CoreLogic’s home price index, which reflects distressed sales as well. June marked the 16th consecutive month of increases.

The pace of home price appreciation is showing signs of slowing. In June, prices rose 1.9 percent compared to May — a slower pace for increases than  recent months. April to May, prices rose 2.6 percent, while they rose nearly 2.8 percent in April from March.

Some analysts point to a slowing due to rising mortgage rates, fewer investors  purchases, and a rise in inventory levels of homes for sale. The National Association of REALTORS® reported inventories of existing homes for sale rose to 5.2 months in June from 5 months in May. A six- to seven-month supply is considered a balanced market.

Still, prices are not showing signs of stalling. CoreLogic analysts predict that home prices will be up 12.5 percent year over year in July. Your comments?

Source: “Home Prices Rising at Fastest Pace in 36 Years,” Mortgage News Daily (Aug. 6, 2013) and “Home prices rise again, but at a slower pace,” USA Today (Aug. 6, 2013)

 

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