Fed chairman says unemployment remains a concern By Inman News®
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After climbing for two weeks in a row, mortgage rates reversed course this week, with rates on 30-year fixed-rate loans again below 4 percent after Federal Reserve Chairman Ben Bernanke voiced worries about persistently high unemployment.
Freddie Mac's Primary Mortgage Market Survey showed rates on 30-year fixed-rate mortgages averaged 3.99 percent with an average 0.7 point for the week ending March 29, down from 4.08 percent last week and 4.86 percent a year ago. Rates on 30-year fixed-rate mortgages hit an all-time low in records dating to 1971 of 3.87 percent during the first three weeks of February.
Rates on 15-year fixed-rate mortgages, a popular refinancing option, averaged 3.23 percent with an average 0.8 point, down from 3.3 percent last week and 4.09 percent a year ago. Rates on 15-year loans hit a low in records dating to 1991 of 3.13 percent during the week ending March 8.
For 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans, rates averaged 2.9 percent, with an average 0.8 point, down from 2.96 percent last week and 3.7 percent a year ago. The five-year ARM hit a low in records dating to 2005 of 2.8 percent the week of Feb. 23.
Rates on 1-year Treasury-indexed ARMs averaged 2.78 percent with an average 0.6 point, down from 2.84 percent last week and 3.26 percent a year ago. Rates on one-year ARMs hit an all-time low in records dating to 1984 of 2.72 percent during the week ending March 1.
Looking back a week, a separate survey by the Mortgage Bankers Association showed demand for purchase loans during the week ending March 23 was up a seasonally adjusted 3.3 percent from the week before. The MBA survey showed demand for purchase loans was up 1 percent from a year ago.
Requests to refinance existing mortgages were down for the sixth week in a row, to a level 24.2 percent lower than a peak seen in February, 2012. Requests to refinance still accounted for 71.9 percent of all mortgage applications, but that's the lowest share since July 2011.
Freddie Mac's chief economist, Frank Nothaft, attributed the decline in mortgage rates to weaker housing economic indicators.
The Standard & Poor's/Case Shiller 20-City Composite home price index slid in January to its lowest reading in about a decade, Nothaft said in a statement. "In addition, new-home sales declined 0.5 percent in February, below the market consensus of an increase, and pending existing home sales also declined for the month."
Mortgage rates are determined largely by investor demand for mortgage-backed securities (MBS) guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae.
During the downturn, the government helped keep mortgage rates low by buying more than $1 trillion in MBS. The government's "quantitative easing" programs -- which also included purchases of Treasury bonds -- added to the demand for MBS and similar investments, pushing up their price, and reducing their yields.
Although the Federal Reserve discontinued its mortgage-backed securities purchases in March 2010, mortgage rates continued to fall as MBS remained popular with investors seeking a safe haven from turmoil in financial markets.
As the economic recovery picks up steam, mortgage rates and interest rates could rise if government-backed MBS and Treasury bonds fall out of favor with investors.
Real estate economists and analysts surveyed by the Urban Land Institute expect 10-year Treasurys to rise as the recovery picks up steam, from an average of 2.4 percent this year to 3.1 percent in 2013 and 3.8 percent in 2014.
Historically, mortgage rates have tracked 10-year Treasury yields fairly closely, so that forecast implies mortgage rates could rise 140 basis points, or 1.4 percentage points, in the next two years.
According to Euro Pacific Capital Inc. CEO Peter Schiff, the flight from bonds could be exacerbated by the government's massive holdings, which Schiff thinks have a distorting effect on the market.
Schiff -- whose views are more pessimistic than those of many investors and economists -- predicts a bubble in bond markets will lead to another economic crash in the next two to three years.
The root of the problem is similar to the problems faced by debtor nations in Europe, Schiff told Forbes this week: “We consume more than we produce and we borrow abroad, but we are never going to be able to pay them back."
Mortgage rates began their recent surge on March 13 after the Federal Reserve's open market committee announced that its members do not anticipate an expansion of existing quantitative easing programs.
The committee said the Fed will continue reinvesting principal payments from its MBS holdings into like investments, and rolling over maturing Treasury securities at auction. Signs of an economic recovery and a surge in the stock market may also have hurt demand for Treasurys and MBS.
Yields on Treasurys and MBS came back down this week after Federal Reserve Chairman Ben Bernanke said unemployment remains a worry and that the Fed remains prepared to boost the economy with "continued accommodative policies."
Much of the recent improvement in job markets is due to a slowdown in layoffs rather than increased hiring, Bernanke said Monday at an economics conference.
The private sector employs 5 million fewer workers than it did at its peak, and the workforce has grown in the meantime, he noted. The unemployment rate in February was 3 percentage point above its average over the 20 years before the recession.
Further improvements in the unemployment rate "will likely require a more-rapid expansion of production and demand from consumers and businesses, a process that can be supported by continued accommodative policies," Bernanke said.
The National Association of REALTORS®' chief economist, Lawrence Yun, stated that fears of rising mortgage rates could spur homebuyer demand. But if rates increase significantly, that would reduce buyers' purchasing power, Yun said.
Yun predicts rates on 30-year fixed-rate mortgages will soon be in the 4.3 to 4.6 percent range.
In their most recent forecast, economists at Fannie Mae said they expect 30-year fixed-rate loans to average 4.1 percent during the second half of 2012, and 4.3 percent in 2013.
Copyright 2012 Inman News
Showing posts with label rates. Show all posts
Showing posts with label rates. Show all posts
Monday, April 2, 2012
Wednesday, May 11, 2011
Lowest Mortgage Rates
May 11, 2011 from Realty Times
Slow Economic Recovery Produces Lowest Mortgage Rates by Ed Ferrara
After releasing various reports of economic data this past week, it was evident that the economic recovery is at a slower pace than anticipated which, in turn, produced the lowest mortgage rates so far for this year 2011. Towards the end of the week, Freerateupdate.com's daily survey of wholesale and direct lenders showed that conforming 30 year fixed mortgage rates had dropped .125% to a new low of 4.375%. Remaining the same at last week's lows, 15 year fixed mortgage rates are at 3.750% and 5/1 adjustable mortgage rates are at 3.000%. Conforming fixed rate mortgage loans are popular with borrowers who want the same mortgage payment for the life of the loan. Available with 0.7 to 1% origination fee, these are the lowest mortgage rates for borrowers who have good credit and can obtain lender approval.
FHA 30 year fixed mortgage rates are at 4.250%, still lower than conforming 30 year fixed mortgage rates. FHA 15 year fixed mortgage rates are at 4.000% and FHA 5/1 adjustable mortgage rates are at 3.375%, both slightly higher than the comparable conforming mortgage rates. FHA mortgage loans are often used by borrowers, especially first time home buyers, who enjoy the benefit of low down payment requirements. Borrowers who have less than perfect credit also turn to FHA for their mortgage needs. In return for these benefits, FHA closing costs (APR) are higher because of various FHA fees and the upfront mortgage insurance premium.
Holding their own, jumbo mortgage rates are still at favorable lows which is a major benefit for high end borrowers. Current jumbo 30 year fixed mortgage rates are at 5.125%, jumbo 15 year fixed mortgage rates are at 4.500% and jumbo 5/1 adjustable rate mortgages are at 3.625%, all remaining the same this past week. Jumbo mortgage loans are necessary for mortgage financing above the conforming loan limit which is $417,000 to $729,250, depending on location of the property. These are the lowest jumbo mortgage rates available with 0.7 to 1% origination fee to borrowers who have maintained outstanding credit.
MBS prices (mortgage backed securities) fluctuated over the past week. Mortgage rates move up and down in the opposite direction of MBS prices. With lower mortgage rates in the limelight, there has been an increase in both purchases and refinances as reported by the Mortgage Bankers Association. It was reported that private sector jobs increased which was positive news. On the other hand, jobless claims increased as well as the unemployment rate for the month of April. While the positive news indicates an economic recovery, the negative news reflects a weaker and slower recovery. These mixed reports have continued to create uncertainty for investors trying to determine which ones reflect the true state of the economy. At the end of last week, the price of crude oil dropped significantly bringing about more questions. Crude oil prices quickly rebounded today. In the end, negative economic news has been resulting in lower mortgage rates which is a plus for borrowers, especially as the home buying season is under way.
FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1% point origination fee.
Click here for today’s new york mortgage rates.
Copyright © 2011 Realty Times. All Rights Reserved.
Slow Economic Recovery Produces Lowest Mortgage Rates by Ed Ferrara
After releasing various reports of economic data this past week, it was evident that the economic recovery is at a slower pace than anticipated which, in turn, produced the lowest mortgage rates so far for this year 2011. Towards the end of the week, Freerateupdate.com's daily survey of wholesale and direct lenders showed that conforming 30 year fixed mortgage rates had dropped .125% to a new low of 4.375%. Remaining the same at last week's lows, 15 year fixed mortgage rates are at 3.750% and 5/1 adjustable mortgage rates are at 3.000%. Conforming fixed rate mortgage loans are popular with borrowers who want the same mortgage payment for the life of the loan. Available with 0.7 to 1% origination fee, these are the lowest mortgage rates for borrowers who have good credit and can obtain lender approval.
FHA 30 year fixed mortgage rates are at 4.250%, still lower than conforming 30 year fixed mortgage rates. FHA 15 year fixed mortgage rates are at 4.000% and FHA 5/1 adjustable mortgage rates are at 3.375%, both slightly higher than the comparable conforming mortgage rates. FHA mortgage loans are often used by borrowers, especially first time home buyers, who enjoy the benefit of low down payment requirements. Borrowers who have less than perfect credit also turn to FHA for their mortgage needs. In return for these benefits, FHA closing costs (APR) are higher because of various FHA fees and the upfront mortgage insurance premium.
Holding their own, jumbo mortgage rates are still at favorable lows which is a major benefit for high end borrowers. Current jumbo 30 year fixed mortgage rates are at 5.125%, jumbo 15 year fixed mortgage rates are at 4.500% and jumbo 5/1 adjustable rate mortgages are at 3.625%, all remaining the same this past week. Jumbo mortgage loans are necessary for mortgage financing above the conforming loan limit which is $417,000 to $729,250, depending on location of the property. These are the lowest jumbo mortgage rates available with 0.7 to 1% origination fee to borrowers who have maintained outstanding credit.
MBS prices (mortgage backed securities) fluctuated over the past week. Mortgage rates move up and down in the opposite direction of MBS prices. With lower mortgage rates in the limelight, there has been an increase in both purchases and refinances as reported by the Mortgage Bankers Association. It was reported that private sector jobs increased which was positive news. On the other hand, jobless claims increased as well as the unemployment rate for the month of April. While the positive news indicates an economic recovery, the negative news reflects a weaker and slower recovery. These mixed reports have continued to create uncertainty for investors trying to determine which ones reflect the true state of the economy. At the end of last week, the price of crude oil dropped significantly bringing about more questions. Crude oil prices quickly rebounded today. In the end, negative economic news has been resulting in lower mortgage rates which is a plus for borrowers, especially as the home buying season is under way.
FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1% point origination fee.
Click here for today’s new york mortgage rates.
Copyright © 2011 Realty Times. All Rights Reserved.
Wednesday, May 4, 2011
Mortgage Rates Keep Going Lower
May 4, 2011 from Realty Times
Mortgage Rates Keep Going Lower
Each time economic data is released or major events happen anywhere in the world, markets react in some sort of way. Lately, markets have been somewhat subdued as the reports have been mixed with both good and not so good data, although it has been positive for mortgage rates which keep going lower. Freerateupdate.com's daily survey of wholesale and direct lenders show that mortgage rates changed this past week for the better.
Conforming 30 year fixed mortgage rates started the week at 4.750%, dropped by .250% and now are at 4.500%. 15 year fixed mortgage rates also dropped by the same .250% and are at 3.750%. 5/1 adjustable mortgage rates are at 3.000%, a drop of .125%. These are the best mortgage rates available with 0.7 to 1% origination fee for well qualified borrowers. After remaining stable for some time, mortgage rates seem to be heading lower at what is usually one of the busiest seasons of the year.
FHA mortgage rates also repriced for the better. FHA 30 year fixed mortgage rates are at 4.250%, and FHA 15 year fixed mortgage rates are at 4.000%, both down .250%. FHA 5/1 adjustable mortgage rates are at 3.375%, down .275%. FHA mortgage loans offer a low down payment, but borrowers must be prepared to pay additional FHA fees and an upfront mortgage insurance premium which results in higher FHA closing costs (APR). FHA's recent increase in the annual mortgage insurance premium has resulted in a slow down of recent FHA mortgage applications.
Jumbo mortgage rates also did well this past week which should be a boost for high end home buyers. Jumbo 30 year fixed mortgage rates decreased by .250% and are at 5.125%. Jumbo 15 year fixed mortgage rates went from 5.000% in the early part of the week to 4.500% in the latter part of the week. Jumbo 5/1 adjustable mortgage rates are at 3.625% which is a decrease of .250%. With outstanding credit, borrowers can obtain these low jumbo mortgage rates with 0.7 to 1% origination fee. This week's economic data had mixed results on MBS prices (mortgage backed securities) as data continued to roll in. MBS prices affect mortgage rates which move in the opposite direction. While new home sales came in stronger, home prices continued to decline. Consumer sentiment increased and personal income rose at the same time that unemployment claims increased. With gas prices heading up, everyone will be watching to see what impact this is going to have on the already slow economic recovery.
FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1% point origination fee.
Copyright © 2011 Realty Times. All Rights Reserved.
Mortgage Rates Keep Going Lower
Each time economic data is released or major events happen anywhere in the world, markets react in some sort of way. Lately, markets have been somewhat subdued as the reports have been mixed with both good and not so good data, although it has been positive for mortgage rates which keep going lower. Freerateupdate.com's daily survey of wholesale and direct lenders show that mortgage rates changed this past week for the better.
Conforming 30 year fixed mortgage rates started the week at 4.750%, dropped by .250% and now are at 4.500%. 15 year fixed mortgage rates also dropped by the same .250% and are at 3.750%. 5/1 adjustable mortgage rates are at 3.000%, a drop of .125%. These are the best mortgage rates available with 0.7 to 1% origination fee for well qualified borrowers. After remaining stable for some time, mortgage rates seem to be heading lower at what is usually one of the busiest seasons of the year.
FHA mortgage rates also repriced for the better. FHA 30 year fixed mortgage rates are at 4.250%, and FHA 15 year fixed mortgage rates are at 4.000%, both down .250%. FHA 5/1 adjustable mortgage rates are at 3.375%, down .275%. FHA mortgage loans offer a low down payment, but borrowers must be prepared to pay additional FHA fees and an upfront mortgage insurance premium which results in higher FHA closing costs (APR). FHA's recent increase in the annual mortgage insurance premium has resulted in a slow down of recent FHA mortgage applications.
Jumbo mortgage rates also did well this past week which should be a boost for high end home buyers. Jumbo 30 year fixed mortgage rates decreased by .250% and are at 5.125%. Jumbo 15 year fixed mortgage rates went from 5.000% in the early part of the week to 4.500% in the latter part of the week. Jumbo 5/1 adjustable mortgage rates are at 3.625% which is a decrease of .250%. With outstanding credit, borrowers can obtain these low jumbo mortgage rates with 0.7 to 1% origination fee. This week's economic data had mixed results on MBS prices (mortgage backed securities) as data continued to roll in. MBS prices affect mortgage rates which move in the opposite direction. While new home sales came in stronger, home prices continued to decline. Consumer sentiment increased and personal income rose at the same time that unemployment claims increased. With gas prices heading up, everyone will be watching to see what impact this is going to have on the already slow economic recovery.
FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1% point origination fee.
Copyright © 2011 Realty Times. All Rights Reserved.
Thursday, February 17, 2011
Don't Be Mystified By The Mortgage Maze
February 17, 2011 - Realty Times
Don't Be Mystified By The Mortgage Maze by Broderick Perkins
Years after the housing market tanked and sank the economy, more than 70 percent of Americans say getting a mortgage today is a serious national problem, according to a new study by MortgageMatch.com, a home loan and information site operated by Move, Inc.
According to the MortgageMatch.com survey, today's lending environment is so confusing many borrowers are experiencing high levels of stress and frustration.
More than one in five recent home buyers (20.9 percent) told MortgageMatch.com, waiting to hear if they were approved for a mortgage was more stressful than waiting to hear if they got a job.
MortgageMatch.com says home buyers can significantly improve their chances of getting a mortgage application approved on the best possible terms in today's tough lending marketplace by taking the following steps.
• Pay down your debt as much as you can before applying for a mortgage.
Lenders calculate the ratio of your debt to your income to determine how much you can afford to borrow. Your total debt-to-income is based on how much of your gross income would go toward all of your debt obligations, including mortgage, car loans, child support and alimony, credit card bills, student loans and condominium fees.
By reducing your debt as much as you can, you will improve your debt-to-income ratio and your credit score.
• Clean up your credit long before you apply for a mortgage.
Credit is critical today, not just to get a mortgage but to get the best terms. A marginal credit score can cost you tens of thousands of dollars over the life of the loan. Your score on the 850-point FICO credit rating scale must be 680 today to qualify for a prime loan and at least 720 to get the best rates.
Pull one or all of your three annual credit reports from AnnualCreditReport.com and check yourself, before you wreck yourself.
You'll have to pay a nominal fee of $10 to $15 to each credit bureau -- Equifax, Experian and TransUnion -- to get your credit score. Review your report for errors and omissions.
• Don't make a major purchase on credit and don't apply for new credit before you apply for a mortgage or at any point before your mortgage closes. Purchases and credit accounts increase your debt and hurt your debt-to-income ratio.
• Increase your down payment. The more you put down the better your rate and your chances at scoring on that loan application. If you can't increase your money down, buy a cheaper home. Now is not the time to stretch.
• Get all your docs in a row before you apply for a mortgage. Don't waste time or raise the ire of lenders who are tougher than ever on documentation for income, assets, financial obligations and more. When you apply, have your paperwork ready.
• Know and prepare for your cash requirements. Cash expenses, beyond the down payment can crush you. Closings costs are on the rise. They can include transfer taxes, lenders fees, title insurance, escrow, settlement and home inspection costs. Also upfront property taxes, homeowner association dues homeowner insurance and other costs could come due before you close.
• Larger loans raise your costs. So called "jumbo mortgages" exceed the $417,000 "conforming loan level" in most parts of the country. In high cost areas like New York City, Washington D.C., Miami, and many parts of California, jumbos begin at $729,750. Larger mortgages are more risky so they cost more, require better credit and demand larger down payments.
• Negotiate tough. Ask for a purchase price lower than the value. A lower price serves both you by lowering your loan-to-value ratio and your lender, by reducing its risk. In today's marketplace, many sellers are willing to deal. Go for it.
• Don't get taken. When you see rates attractive rates advertised on the Internet or TV don't froth. They could be come-on or teaser rates with lots of strings attached. In addition, rates change several times during the day and differ by locale, by borrower, by loan-to-value ratio and due to a host of other factors. Advertised rates maybe be what you see, but they are often not what you get.
Copyright © 2011 Realty Times. All Rights Reserved.
Don't Be Mystified By The Mortgage Maze by Broderick Perkins
Years after the housing market tanked and sank the economy, more than 70 percent of Americans say getting a mortgage today is a serious national problem, according to a new study by MortgageMatch.com, a home loan and information site operated by Move, Inc.
According to the MortgageMatch.com survey, today's lending environment is so confusing many borrowers are experiencing high levels of stress and frustration.
More than one in five recent home buyers (20.9 percent) told MortgageMatch.com, waiting to hear if they were approved for a mortgage was more stressful than waiting to hear if they got a job.
MortgageMatch.com says home buyers can significantly improve their chances of getting a mortgage application approved on the best possible terms in today's tough lending marketplace by taking the following steps.
• Pay down your debt as much as you can before applying for a mortgage.
Lenders calculate the ratio of your debt to your income to determine how much you can afford to borrow. Your total debt-to-income is based on how much of your gross income would go toward all of your debt obligations, including mortgage, car loans, child support and alimony, credit card bills, student loans and condominium fees.
By reducing your debt as much as you can, you will improve your debt-to-income ratio and your credit score.
• Clean up your credit long before you apply for a mortgage.
Credit is critical today, not just to get a mortgage but to get the best terms. A marginal credit score can cost you tens of thousands of dollars over the life of the loan. Your score on the 850-point FICO credit rating scale must be 680 today to qualify for a prime loan and at least 720 to get the best rates.
Pull one or all of your three annual credit reports from AnnualCreditReport.com and check yourself, before you wreck yourself.
You'll have to pay a nominal fee of $10 to $15 to each credit bureau -- Equifax, Experian and TransUnion -- to get your credit score. Review your report for errors and omissions.
• Don't make a major purchase on credit and don't apply for new credit before you apply for a mortgage or at any point before your mortgage closes. Purchases and credit accounts increase your debt and hurt your debt-to-income ratio.
• Increase your down payment. The more you put down the better your rate and your chances at scoring on that loan application. If you can't increase your money down, buy a cheaper home. Now is not the time to stretch.
• Get all your docs in a row before you apply for a mortgage. Don't waste time or raise the ire of lenders who are tougher than ever on documentation for income, assets, financial obligations and more. When you apply, have your paperwork ready.
• Know and prepare for your cash requirements. Cash expenses, beyond the down payment can crush you. Closings costs are on the rise. They can include transfer taxes, lenders fees, title insurance, escrow, settlement and home inspection costs. Also upfront property taxes, homeowner association dues homeowner insurance and other costs could come due before you close.
• Larger loans raise your costs. So called "jumbo mortgages" exceed the $417,000 "conforming loan level" in most parts of the country. In high cost areas like New York City, Washington D.C., Miami, and many parts of California, jumbos begin at $729,750. Larger mortgages are more risky so they cost more, require better credit and demand larger down payments.
• Negotiate tough. Ask for a purchase price lower than the value. A lower price serves both you by lowering your loan-to-value ratio and your lender, by reducing its risk. In today's marketplace, many sellers are willing to deal. Go for it.
• Don't get taken. When you see rates attractive rates advertised on the Internet or TV don't froth. They could be come-on or teaser rates with lots of strings attached. In addition, rates change several times during the day and differ by locale, by borrower, by loan-to-value ratio and due to a host of other factors. Advertised rates maybe be what you see, but they are often not what you get.
Copyright © 2011 Realty Times. All Rights Reserved.
Friday, February 11, 2011
Mortgage Rates Rise to 5.05 Percent
February 11, 2011
From Realty Times: 30-Year Fixed-Rate Mortgage Rates Rise to 5.05 Percent
McLean, VA – Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®) which shows long- and short-term rates rising this week.
30-year fixed-rate mortgage (FRM) averaged 5.05 percent with an average 0.7 point for the week ending February 10, 2011, up from last week when it averaged 4.81 percent. Last year at this time, the 30-year FRM averaged 4.97 percent. Interest rates on a 30-year fixed-rate mortgage rose to the highest level since the last week in April 2010.
15-year FRM this week averaged 4.29 percent with an average 0.7 point, up from last week when it averaged 4.08 percent. A year ago at this time, the 15-year FRM averaged 4.34 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.92 percent this week, with an average 0.6 point, up from last week when it averaged 3.69 percent. A year ago, the 5-year ARM averaged 4.19 percent.
1-year Treasury-indexed ARM averaged 3.35 percent this week with an average 0.6 point, up from last week when it averaged 3.26 percent. At this time last year, the 1-year ARM averaged 4.33 percent.
Frank Nothaft, vice president and chief economist at Freddie Mac, reports, "Long-term bond yields jumped on positive economic data reports, which placed upward pressure on mortgage rates this week. For all of 2010, nonfarm productivity rose 3.6 percent, the most since 2002, while January’s unemployment rate unexpectedly fell from 9.4 percent to 9.0 percent. Moreover, the service industry expanded in January at the fastest pace since August 2005."
Copyright © 2011 Realty Times. All Rights Reserved.
From Realty Times: 30-Year Fixed-Rate Mortgage Rates Rise to 5.05 Percent
McLean, VA – Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®) which shows long- and short-term rates rising this week.
30-year fixed-rate mortgage (FRM) averaged 5.05 percent with an average 0.7 point for the week ending February 10, 2011, up from last week when it averaged 4.81 percent. Last year at this time, the 30-year FRM averaged 4.97 percent. Interest rates on a 30-year fixed-rate mortgage rose to the highest level since the last week in April 2010.
15-year FRM this week averaged 4.29 percent with an average 0.7 point, up from last week when it averaged 4.08 percent. A year ago at this time, the 15-year FRM averaged 4.34 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.92 percent this week, with an average 0.6 point, up from last week when it averaged 3.69 percent. A year ago, the 5-year ARM averaged 4.19 percent.
1-year Treasury-indexed ARM averaged 3.35 percent this week with an average 0.6 point, up from last week when it averaged 3.26 percent. At this time last year, the 1-year ARM averaged 4.33 percent.
Frank Nothaft, vice president and chief economist at Freddie Mac, reports, "Long-term bond yields jumped on positive economic data reports, which placed upward pressure on mortgage rates this week. For all of 2010, nonfarm productivity rose 3.6 percent, the most since 2002, while January’s unemployment rate unexpectedly fell from 9.4 percent to 9.0 percent. Moreover, the service industry expanded in January at the fastest pace since August 2005."
Copyright © 2011 Realty Times. All Rights Reserved.
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