Mortgage Rates Drop Again This Week

For the third straight week, long-term mortgage rates inched down, according to Freddie Mac’s weekly mortgage survey.

The 30-year fixed rate mortgage averaged 4.87 percent for the week, down from last week’s 4.95 percent. The rate was 4.97 percent at this time last year.

The 15-year mortgage rate also dipped for the week, averaging 4.15 percent, down from last week’s 4.22 percent.

The 5-year adjustable-rate mortgage averaged 3.72 percent, which is a drop from last week’s 3.8 percent average.

"Mortgage rates saw an overall improvement this week,” says Frank Nothaft, Freddie Mac’s chief economist. “Interest rates for 30-year fixed mortgages were almost 0.2 percentage points below this year's high set just three weeks ago.” This means that home buyers can now expect to pay $263 less per year on a $200,000 loan, Nothaft adds.

Mortgage Rates Hold Mostly Steady This Week

Mortgage rates mostly remained steady for the week, according to Freddie Mac’s weekly report on average mortgage rates.

The average 30-year fixed mortgage rate increased just slightly this week to 4.81 percent from 4.80 percent the week prior. Mortgage rates have been steadily inching upward since reaching a 40-year low in November of 4.17 percent. Meanwhile, 15-year rates dropped to 4.08 percent this week from 4.09 percent last week.

Five-year adjustable-rate mortgages also fell slightly to 3.69 percent from 3.7 percent last week.

"Mortgage rates held relatively stable this week on news that the economy improved and inflation remained in check at the end of 2010,” says Frank Nothaft, chief economist at Freddie Mac.

Source: “Mortgage Rates Show Mixed Results This Week,” Freddie Mac (Feb. 3, 2011)

Mortgage Applications Bounce Back

U.S. mortgages were back on the rise last week after a holiday-related slowdown in mid-January, the Mortgage Bankers Association reported.

Mortgage applications gained 11.3 percent in the week ended Jan. 28, according to MBA’s seasonally adjusted index. In the week prior, applications had fallen nearly 13 percent.

Meanwhile, refinancing applications rose 11.7 percent. Loan requests for home purchases also increased 9.5 percent.

Source: “U.S. Mortgage Applications Rose Last Week,” Reuters News (Feb. 2, 2011)

Mortgage Rates Drop Slightly

Mortgage rates didn’t fluctuate too much this week, dropping only slightly in some cases while the conforming 30-year fixed mortgage rate held unchanged at 4.94 percent for the week, Bankrate.com reports.

Bankrate.com reports the following average rates:
• 15-year fixed mortgages fell to 4.29 percent.
• Large jumbo 30-year fixed rates dropped slightly to 5.57 percent.
• 5-year adjustable rate mortgages fell to 3.88 percent.

“The average 30-year fixed mortgage rate has been particularly docile, with the average rate fluctuating less than one-tenth of a percentage point over the past month,” according to Bankrate.com. “A heavy dose of economic data and ongoing debt issuance by the U.S. Treasury have the potential to introduce some volatility to mortgage rates over the next week.”

Mortgage rates have remained at historic lows for several years. The last time mortgage rates were above 6 percent was November 2008.

Source: “Bankrate: Mortgage Rates Mostly Lower,” Bankrate.com (Jan. 13, 2011)

Mortgage Rates Drop Slightly for the Week

Interest rates took a slight dip this week as economic uncertainty continued to plague the market, according to Bankrate.com’s national survey of large lenders.

The average 30-year fixed rate mortgages dropped slightly to 4.94 percent for the week. Meanwhile,15-year fixed rate mortgages were 4.32 percent for the week, while 5-year adjustable-rate mortgages held nearly steady at 3.99 percent.

The drop in rates suggests the financial market may have overreacted to the inflation fears that had originally pushed rates higher in late December, according to Bankrate.com.

"Unemployment is starting to stabilize. Housing is stabilizing, although there are still soft pockets. Stocks are up, and there are inflationary fears with energy prices going up, so directionally and logically, we're in for potentially higher interest rates," predicts Anthony Hsieh, chief executive of loanDepot.com, a direct mortgage lender in Irvine, Calif.

Rising Interest Rates Stall Some Home Sales

Rising interest rates have closed the door on $1 trillion in loans, said Scott Buchta, an investment strategist at Braver Stern Securities in Chicago.

As rates on loans guaranteed by FHA rise above 5 percent, fewer and fewer buyers qualify. LendingTree Chief Economist Cameron Findlay pointed out that a 30-basis-point rise in the 10-year Treasury note's yield would typically add about $45 per month to the payments on a $250,000 mortgage.

"Should rates rise higher from here, you'll start to have an impact on a purchase market that is just starting to recover," said Buchta.

Source: Reuters News, Al Yoon and Daniel Trotta (12/08/2010)

Bankrate: Mortgage Rates Dip Down

Mortgage rates retreated last week, following two consecutive weeks climbing higher. The average conforming 30-year fixed mortgage rate decreased to 4.58 percent, according to Bankrate.com. The average 30-year fixed mortgage has an average of 0.40 discount and origination points.

To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.

The average 15-year fixed mortgage decreased to 3.97 percent, and the larger, jumbo 30-year fixed rate dipped as well to 5.18 percent. Adjustable rate mortgages dropped as well, with the average 5-year ARM at 3.66 percent and the average 7-year ARM falling to 3.97 percent.

The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.58 percent, the monthly payment for the same size loan would be $1,022.90, a savings of $219 per month for a homeowner refinancing now.

SURVEY RESULTS

* 30-year fixed: 4.58% -- down from 4.62% last week (avg. points: 0.37)
* 15-year fixed: 3.97% -- down from 4.02% last week (avg. points: 0.32)
* 5/1 ARM: 3.66% -- down from 3.71% last week (avg. points: 0.38)

Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

Mortgage Rates Rise Significantly

Mortgage rates increased again this week, with the average conforming 30-year fixed mortgage rate now 4.62 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.37 discount and origination points.

To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.

The average 15-year fixed mortgage increased to 4.02 percent, and the larger jumbo 30-year fixed rate soared as well to 5.24 percent. Adjustable rate mortgages also climbed higher, with the average 5-year ARM inching higher to 3.71 percent and the average 7-year ARM rising to 4.01 percent.

Mortgage rates jumped significantly this week, posting a second consecutive weekly increase since the Federal Reserve announced renewed measures to boost the economy. Worries that the Fed's quantitative easing program will spark higher inflation, coupled with stronger economic data on retail sales and weekly unemployment filings fueled the latest increase. Although mortgage rates have increased, they remain extremely low in a historical context and will not be an impediment to well-qualified borrowers for the foreseeable future.

The last time mortgage rates were above 6 percent was November 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.62 percent, the monthly payment for the same size loan would be $1,027.68, a savings of $214 per month for a homeowner refinancing now.