Tag Archive | "mortgage rates"

Mortgage Rates Fall To New Lows In US

The housing market continues to grow more affordable in the United States for those that are able to secure a mortgage loan. Rates for 15-year and 30-year fixed loans fell to all-time record lows once again in the last week. It was the fifth week in a row that the 30-year fixed-rate mortgage loans experienced a decline.

The rate for 15-year fixed loan fell to below three percent for the first time in history. Now that the three percent barrier has been broken, there is no telling as to how long mortgage loans will continue to drop in the near future. 30-year fixed-rate loans dropped to 3.75 percent.

When crunching the numbers, the new 30-year fixed-rate of 3.75 percent could potentially provide a savings of more than sixteen thousand dollars over the thirty years when compared to the average mortgage loan rate from the previous year. Those that opt to refinance with a new 15-year fixed-rate loan will enjoy a savings of at least thirty-seven dollars per month. Those that refinance will have a monthly payment of approximately $689 for every one hundred thousand dollars that is borrowed.

The drop in mortgage loan rates has little to do with the housing market here in the United States. Rather, it has much to do with the unstable European market.

Economists believe that there has never been a better time to buy a home, and many house flippers agree. Mortgage loan rates are half of what they were at the peak of the residential real estate bubble, and homes have never been more affordable.

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Mortgage Rates Drop to New Record Low

The mortgage rates keep dropping, and the residential real estate market continues to grow more affordable. For the third straight week, mortgage rates fell to an all-time record low for both 30-year and 15-year mortgages.

With prices having already hit what many economists believe to be the bottom, the residential property market has become incredibly favorable to buyers. As can be expected, more buyers are looking to enter the market by purchasing a home. Those that are able to qualify for either a 30-year or 15-year mortgage loan are enjoying some of the best deals on homes in years.

The current rate for 30-year fixed-rate mortgage loans is 3.79%. For 15-year fixed-rate mortgage loans, the current rate dropped to 3.04%. The decline in both mortgage loan rates has put them at the lowest they have ever been since mortgages first began in the 1950s.

New homebuyers aren’t the only ones benefiting from the low mortgage rates. Those looking to refinance are also reaping the benefits. Most of those looking to refinance are option for 15-year fixed-rate mortgage loans.

While many believe that the market has hit the bottom, home sales are still relatively low due to the difficulty that many buyers are having in getting approved for a mortgage.

With that said, construction is on the rise for residential properties. Many economists believe the construction of new properties to be a very positive sign for the market. There is hope that the market will finally start to see some strong gains in the next year, and as long as the mortgage rates remain at their current low levels, it is very likely that those gains will take place.

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Mortgage Investors Caught in Fear with the Decrease in the Property Rates

Mortgage Investors Caught in Fear with the Decrease in the Property Rates

It was proved from the research of Freddie Mac that the home loans taken for thirty years is now going to be dropped from 4.60% to 4.55% as compared to the last week. The rate for both fifteen years mortgage loans and thirty years mortgage loans has now been dropped from 3.78% to 3.74%. The rate is too low as calculated for this year and this is because of the downturn in the economy of the whole world.

The weakness of the US economy can be observed easily from the yield of the bellwether ten-year Treasury notes which was dropped below 3%. It is noticed very first time since the last December and never noticed in the past few years. From April to May, the index ratio of the institute of Supply Management index dropped from 60.4 to 53.5. This is considered as the weakest reading since September 2009. If you find the reading above 50, it means that the manufacturing sector is growing rapidly.

The portfolio manager of TCW Mr. Bret Barker says that the index of the company fell 10.7 points and they never saw this failure since September 2001. Now the index of the company stands at 51.0.  Another survey made by ADP which is also called the payroll processor shows that the jobs added by employers in the month of May were 38,000 while 177,000 jobs were added in the month of April. The Bloomberg News made a survey in this regard and called for the report of ADP to add 175,000 jobs in the month of May.

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Mortgage Rate Roundup:  Low Rates Continue

Mortgage Rate Roundup: Low Rates Continue

Mortgage rates continue to stay at the lowest rates this year. Current 30 year fixed rates are at holding strong at the low of 4.375%. 15 year fixed mortgage rates are at a 3.750%. 5/1 ARM mortgage rates are at a dismal 3.00%. These rates are only for borrowers who have good credit (normally 700+ FICO score) and require a 0.7 to 1% origination fee to obtain these rates.

FHA rates are still at a 30 year fixed mortgage rate low of 4.250%. FHA 15 year fixed interest rate are at 4.000% while the 5/1 FHA ARM loans are sitting at 3.375%. FHA mortgages are still very popular since their credit qualifying requirements are less strict then a traditional mortgage and down payments as low as 3.5%. FHA loans do come with FHA origination fees and upfront mortgage insurance premiums (PMI).

In the jumbo mortgage world 30 year fixed rates decreased by .125% and are settling in at 5.00%. 15 year jumbo rates are at 4.50%. 5/1 ARM jumbo rates are at 3.625%. Jumbo rates continue to stay at this level and are available to borrowers with outstanding credit and 0.7 to 1% origination fees.

Currently Wells Fargo California 30 year fixed mortgage program rates are settled at 4.625% or 4.812% APR.

Mortgage backed securities (MBS) rose 8/32. Mortgage backed securities move in the opposite direction of mortgage rates. European debt concerns continue to affect markets as the US stock market continues to drop.

Mortgage rates are expected to stay at these low rates with current economic data and no major world events to push them in either direction.

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