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2009 ends with mortgage interest rates on the riseby Broderick Perkins 12/31/09 -- The average interest rate on a 30-year, fixed-rate mortgage (FRM) rose further above the 5 percent market to 5.14 percent this week, according to Freddie Mac's weekly Primary Mortgage Market Survey (PMMS). For the week ending New Year's Eve, the rate comes with a 0.7 percent point. One point is one percent of the total amount financed. "Although long-term mortgage rates rose for the fourth week in a row, they still remain affordable by historical standards," said Frank Nothaft, Freddie Mac vice president and chief economist. "Based on today's median loan amount of $138,000, monthly principal and interest payments for a 30-year fixed-rate mortgage are close to one-third less than a decade ago when rates peaked at 8.6 percent in May 2000. This translates into almost 50 percent less in interest payments over the full 30-year term. The current average 30-year FRM, at 5.14 percent, is up from 5.05 percent last week, and up from 5.10 percent a year ago, Freddie said. The 15-year FRM this week averaged 4.54 percent with an average 0.7 point, also up from last week when it averaged 4.45 percent, but down from year ago at this time, when the 15-year FRM averaged 4.83 percent. The 5-year Treasury-indexed hybrid ARM (adjustable rate mortgage) averaged 4.44 percent this week, with an average 0.6 point, nearly unchanged from the 4.40 percent average last week, but more than a full percentage point below 5.57 percent from a year ago. The week ending Dec. 31, the 1-year Treasury-indexed ARM averaged 4.33 percent, plus an average 0.6 point. Last week the rate was 4.38 percent. Last year, the 1-year ARM averaged 4.85 percent. Nothaft said, "Nationally, the housing market is slowly improving. House prices rose for the fifth consecutive month in October to the highest level since the beginning of 2009, according to the S&P/Case-Shiller® 20-city composite index. Eleven of the cities experienced positive growth."
Year end mortgage interest rates rising faster, more hikes expectedby Broderick Perkins (12/29/09) Single-digit jumps in mortgage rates for several weeks, gave way this week to larger increases in the cost of financing a home. Mortgage interest rates jumped to an average 5.33 percent the week ending Dec. 29, up by 0.12 of a percent from 5.21 percent a week ago. Compare that increase to those of recent weeks when rates rose only from 0.05 to 0.08 of a percent for fixed-rate mortgages (FRMs) on conforming 30-year loans, according to Calabasas, CA-based Informa Research Services' Interest Rate Review. As the cost of home loans increases, the spread between current rates and rates a year ago is narrowing A year ago the rate was 5.43 percent, little different from 5.33 percent this week. If you've been sitting on the fence waiting for rates to fall more, you may have missed the boat. Higher rates may be on the horizon, according to David Greenlaw, a Morgan Stanley economist. He says the 10 year Treasury yield will rise 40 percent to 5.5 next year -- unlike any increase since 1999. Tied to those yields, 30-year FRMs' interest rates will rise at least to 7.5 percent, Greenlaw told Bloomberg. In the Dec. 29 report, Informa said the highest 30-year FRM, with an average annual percentage rate (APR) of 6.96 percent was unchanged from last week. The lowest average, 4.60 percent dropped from 4.85 percent a week ago, according to Informa, a market research, analyses, and intelligence gathering service for the financial industry since 1983. The average 15-year FRM came in Dec. 29 at 4.73 percent, up from 4.63 percent a week ago, was down from 5.10 percent this time last year. The average interest rate for the 5/1 adjustable rate mortgage (ARM) was also up to 3.60 percent this week from 3.57 percent a week ago, but down from 4.42 percent last year at this time. The FRM rates for 15- and 30-year mortgages and the 5/1 ARM rates are all based on a $200,000 purchase loan, with an 80 percent loan-to-value ratio, for an owner-occupied, single-family residence. Informa's National APR (annual percentage rates) numbers are tallied from the interest rates of some 200 mortgage originators. Informa also reported the average rate for 30-year, non-conforming jumbo loans, 6.35 percent, rose from 6.27 percent a week ago. The jumbo rate remained well off the average 7.13 percent rate this time last year, but that gap is narrowing too. The jumbo averages are based on a $450,000 purchase loan with an 80 percent loan-to-value ratio for an owner-occupied, single-family residence. Rates were unchanged for home equity lines of credit (HELOCs) of $50,000, with an 80 percent loan-to-value note. Dec. 29, the variable rate came in at an average 5 percent, unchanged for several weeks, but up from 4.48 percent a year ago. The average FRM rates on 15-year home equity loans of $50,000, with an 80 percent loan-to-value note came in at 7.45 percent about the same as 7.44 percent a week ago. This loan rate averaged 7.94 percent a year ago.
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Mortgage interest rates continue upward creep
by Broderick Perkins
Jeff Howard, ERATE
Mortgage interest rates moved up another notch for the third week in a row to an average 5.21 percent for fixed-rate mortgages (FRMs) on conforming 30-year loans, according to Calabasas, CA-based Informa Research Services' Interest Rate Review.
A year ago the rate was 5.51 percent.
In the Dec. 22 report, Informa said the highest 30 year fixed rate mortgage, with an average annual percentage rate (APR) of 6.96 percent was unchanged from last week. The lowest average, 4.85 percent, was up from 4.45 percent a week ago, according to Informa, a market research, analyses, and intelligence gathering service for the financial industry since 1983.
The average 15-year FRM came in Dec. 20 at 4.63 percent, down from 4.56 percent a week ago and down from 5.24 percent last year at this time.
The average interest rate for the 5/1 adjustable rate mortgage (ARM) was 3.57 percent compared to 3.55 percent a week ago. Last year at this time the rate was 4.45 percent.
The FRM rates for 15- and 30-year mortgages and the 5/1 ARM rates are all based on a $200,000 purchase loan, with an 80 percent loan-to-value ratio, for an owner-occupied, single-family residence.
Informa's National APR (annual percentage rates) numbers are tallied from the interest rates of some 200 mortgage originators.
Informa also reported the average rate for 30-year, non-conforming jumbo loans, 6.27 percent rose slightly from 6.16 percent a week ago. The jumbo rate remained well off the average 7.22 percent rate this time last year.
The jumbo averages are based on a $450,000 purchase loan with an 80 percent loan-to-value ratio for an owner-occupied, single-family residence.
For home equity lines of credit (HELOCs) of $50,000, with an 80 percent loan-to-value note, the variable rate came in at an average 5 percent, virtually unchanged for the past four weeks but up from 4.66 percent a year ago.
The average FRM rates on 15-year home equity loans of $50,000, with an 80 percent loan-to-value note came in at 7.44 percent, down from 7.45 percent a week ago and 7.94 percent last year.
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Mortgage interest rates inch up
by Broderick Perkins
Jeff Howard, ERATE
(12/15/09) Mortgage interest rates continued their upward trend this week, for the second week in a row, rising to 5.14 percent from 5.06 percent last week for fixed-rate mortgages (FRMs) on conforming 30-year loans.
Calabasas, CA-based Informa Research Services' Interest Rate Review revealed both the highest 30-year FRM, with an annual percentage rate (APR) of 6.96 percent, and the lowest, at 4.45 percent, likewise, remained little changed the week ending Dec. 15, compared to the previous week.
Informa, a market research, analyses, and intelligence gathering service for the financial industry since 1983, revealed the gap between the average 5.14 FRM now and a year ago, 5.47 percent, has narrowed.
The average 15-year FRM came in Dec. 15 at 4.56 percent, up a couple of notches from 4.53 a week ago, but down from 5.24 percent a year ago.
The average interest rate for the 5/1 adjustable rate mortgage (ARM), was 3.55 percent, virtually unchanged from last week, but down almost a full percentage point a year ago when it was 4.55 percent.
The FRM rates for 15- and 30-year mortgages and the 5/1 ARM rates are all based on a $200,000 purchase loan, with an 80 percent loan-to-value ratio, for an owner-occupied, single-family residence.
Informa's National APR (annual percentage rates) numbers are tallied from the interest rates of some 200 mortgage originators.
Informa also reported the average rate for 30-year, non-conforming jumbo loans, 6.16 percent rose slightly from 6.13 percent a week ago. The jumbo rate remained well off the average 7.20 percent rate this time last year.
The jumbo averages are based on a $450,000 purchase loan with an 80 percent loan-to-value ratio for an owner-occupied, single-family residence.
For home equity lines of credit (HELOCs) of $50,000, with an 80 percent loan-to-value note, the variable rate came in at an average 4.99 percent, unchanged for the past two weeks but up noticeably from 4.70 percent a year ago.
The average FRM rates on 15-year home equity loans of $50,000, with an 80 percent loan-to-value note came in at 7.45 percent, down from 7.60 percent a week ago and down from 8 percent a year ago, according to Informa's survey.
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Mortgage interest rate upward trend confirmed
by Broderick Perkins
Jeff Howard, ERATE
(12/10/09) The average interest rate on a 30-year fixed-rate mortgage (FRM) inched up to 4.81 percent for the week ending December 10, 2009, compared to the record low 4.71 percent last week, according to Freddie Mac's weekly Primary Mortgage Market Survey (PMMS).
The average rate includes an average 0.7 point. Each point is one percent of the financed amount.
The lowest rates were in the West where they averaged 4.78 percent.
Earlier this week, Calabasas, CA-basedInforma Research Services reported a similar reverse course in the cost of borrowing home financing money.
Frank Nothaft, Freddie Mac vice president and chief economist said the up tick was due to easing unemployment conditions and higher long-term bond yields.
"Notwithstanding, rates on 30-year fixed mortgages are almost 0.7 percentage points below those at the same time last year. This translates into an $81 lower monthly payment on a $200,000 conventional mortgage," Nothaft said in a prepared statement.
Freddie's PMMS also reported the 15-year FRM, this week averaged 4.32 percent with an average 0.6 point, also up from 4.27 percent last week but down from 5.20 percent a year ago. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.26 percent this week, with an average 0.5 point. Last week it averaged 4.19 percent; a year ago, 5.82 percent. The 1-year Treasury-indexed ARM averaged 4.24 percent this week with an average 0.7 point, down slightly from last week's 4.25 percent average and 5.09 percent a year ago.
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Mortgage interest rates reverse course
by Broderick Perkins
Jeff Howard, ERATE
(12/8/09) After falling for several weeks, mortgage interest rates turned around this week, rising to 5.06 percent, from 5.01 percent a week ago for fixed-rate mortgages (FRMs) on conforming 30-year loans, according to Calabasas, CA-based Informa Research Services' Interest Rate Review.
However, both the highest 30-year FRM, with an annual percentage rate (APR) of 6.96 percent, and the lowest, at 4.32 percent, remained unchangedfor the past two weeks, according to Informa, a market research, analyses, and intelligence gathering service for the financial industry since 1983.
The average 30-year conforming FRM of 5.06 percent was down from a year ago when it was three-quarters of a percentage point higher at 5.58 percent.
The average 15-year FRM came in Dec. 8 at 4.53 percent, up from 4.51 a week ago, but down from 5.36 percent a year ago.
The average interest rate for the 5/1 adjustable rate mortgage (ARM), was 3.54 percent, also up from last week, but down from 4.62 percent a year ago.
The FRM rates for 15- and 30-year mortgages and the 5/1 ARM rates are all based on a $200,000 purchase loan, with an 80 percent loan-to-value ratio, for an owner-occupied, single-family residence.
Informa's National APR (annual percentage rates) numbers are tallied from the interest rates of some 200 mortgage originators.
Informa also reported the average rate for 30-year, non-conforming jumbo loans, 6.13 percent rose from 6.05 percent a week ago, for the second week in a row. Still it remained well off the 7.23 percent rate this time last year.
The jumbo averages are based on a $450,000 purchase loan with an 80 percent loan-to-value ratio for an owner-occupied, single-family residence.
For home equity lines of credit (HELOCs) of $50,000, with an 80 percent loan-to-value note, the variable rate came in at an average 4.99 percent, virtually unchanged from a week ago and up slightly from 4.97 percent a year ago.
Also relatively unchanged were average FRM rates on 15-year home equity loans of $50,000, with an 80 percent loan-to-value note. They came in at 7.60 percent, down just a tad from 7.61 percent last week and down from 8.09 percent a year ago, according to Informa's survey.
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Mortgage rates at new record lows
by Broderick Perkins
Jeff Howard, ERATE
(12/3/09) Averaging 4.71 percent this week, fixed interest rate mortgages (FRMs) on 30-year conforming loans haven't been this low since Freddie Mac began its weekly survey in 1971.
Freddie's Mortgage Market Survey for the week ending Dec. 3 posted another record when the 15-year FRM averaged 4.27 percent, breaking last week's record low. This week's 15-year FRM average interest rate has never been this low since Freddie first included the 15-year FRM in its survey in 1991.
Frank Nothaft, Freddie Mac's chief economist said it's the fifth consecutive week the two rates have fallen. The rates also averaged one full percent point below averages at this time last year.
The 5-year Treasury-indexed hybrid adjustable rate mortgage (ARM) averaged 4.19 percent, rising from 4.18 percent last week and 5.77 percent one year ago.
The 1-year Treasury-indexed ARM averaged 4.25 percent this week with an average 0.6 point, compared to 4.35 percent last week and 5.02 percent a year ago. The last time the 1-year ARM was this low was the week ending June 30, 2005, when it averaged 4.24 percent.
"Low mortgage rates and the cumulative decline in house prices have contributed to an extremely affordable housing market and helped spur home sales this year," said Nothaft.
New and existing home sales in October were 36 percent higher than their January low on a seasonally adjusted, annualized rate, according to the National Association of Realtors (NAR). Pending existing home sales also rose for the ninth straight month in October, representing the longest consecutive gain since the series began in 2001, NAR reported.
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Mortgage interest rates inch lower
by Broderick Perkins
Jeff Howard, ERATE
(12/1/09) Mortgage interest rates slipped further this week, down to 5.01 percent, from 5.07 percent a week ago for fixed-rate mortgages (FRMs) on conforming 30-year loans, according to December's first weekly Interest Rate Review by Calabasas, CA-based Informa Research Services .
On the other hand, both the highest 30-year FRM with an annual percentage rate (APR) of 6.96 percent, and the lowest, at 4.34 percent, were virtually unchanged from last week's survey, said Informa, a market research, analyses, and intelligence gathering service for the financial industry since 1983.
The average 30-year conforming FRM of 5.01 percent was down from a year ago when it was three-quarters of a percentage point higher at 5.76 percent.
The average 15-year FRM came in Dec. 1 at 4.51 percent, down from 4.53 a week ago, was also down from 5.55 percent a year ago.
The average interest rate for the 5/1 adjustable rate mortgage (ARM), was 3.49 percent, down more than a full percentage point from 4.79 percent a year ago.
The FRM rates for 15- and 30-year mortgages and the 5/1 ARM rates are all based on a $200,000 purchase loan, with an 80 percent loan-to-value ratio, for an owner-occupied, single-family residence.
Informa's National APR (annual percentage rates) numbers are tallied from a survey of 200 mortgage originators.
Informa also reported an average 6.05 percent fixed rate for 30-year, non-conforming jumbo loans, up a tad from 6.02 percent a week ago, but well off the 7.38 percent rate this time last year.
The jumbo averages are based on a $450,000 purchase loan with an 80 percent loan-to-value ratio for an owner-occupied, single-family residence.
For home equity lines of credit (HELOCs) of $50,000, with an 80 percent loan-to-value note, the variable rate came in at an average 4.98 percent, identical to the rate a week ago, but up slightly from 4.88 percent a year ago.
Also relatively unchanged were average FRM rates on 15-year home equity loans of $50,000, with an 80 percent loan-to-value note. They came in at 7.61 percent, down from 7.63 percent last week and down from 8.06 percent a year ago, according to Informa's survey.
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Mortgage interest rates unchanged, remain low
by Broderick Perkins
Jeff Howard, ERATE
(11/24/09) Mortgage interest rates were flat beginning this week, but remained low at an average 5.07 percent, for fixed-rate mortgages (FRMs) on conforming 30-year loans.
The high 30-year FRM came in with an annual percentage rate (APR) of 6.96 percent, and the low at 4.43 percent. Along with the average, all were relatively unchanged from a week ago, November 17, according to the November 24 Interest Rate Review by Calabasas, CA-based Informa Research Services, a market research, analysis, and intelligence gathering service for the financial industry.
Informa's National APR (annual percentage rates) numbers are tallied from a survey of 200 mortgage originators.
The average 30-year conforming FRM of 5.07 percent was down from a year ago when it was almost a percentage point higher at 5.87 percent.
The average 15-year FRM came in this week at 4.53 percent, also relatively unchanged from a week ago and down considerably form 5.67 percent a year ago, Informa reported.
The average interest rate for the 5/1 adjustable rate mortgage (ARM), was 3.52 percent, down from 4.93 percent a year ago.
The FRM rates for 15- and 30-year mortgages and the 5/1 ARM rates are all based on a $200,000 purchase loan, with an 80 percent loan-to-value ratio, for an owner-occupied, single-family residence.
Informa also reported an average 6.02 percent fixed rate for 30-year, non-conforming jumbo loans, well off the 7.45 percent rate this time last year.
The jumbo averages are based on a $450,000 purchase loan with an 80 percent loan-to-value ratio for an owner-occupied, single-family residence.
For a home equity line of credit (HELOC) of $50,000 with an 80 percent loan to value note, the variable rate came in at an average 4.98 percent, up slightly from 4.83 percent a year ago.
FRM rates on 15-year home equity loans of $50,000, with an 80 percent loan-to-value note, averaged 7.63 percent, compared to 8.02 percent a year ago, according to Informa's survey.
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Mortgage interest rates near 18-year lows - 15 Year Fixed Rates at 4.32%!
by Broderick Perkins
Jeff Howard, ERATE
(11/19/09) Like a limber limbo dancer dropping ever lower, mortgage interest rates on the 30-year fixed rate mortgage (FRM) dipped to 4.83 percent the week ending November 19.
Last week, the 30-year FRM rate was 4.91 percent, compared to 6.04 percent a year ago, according to Freddie Mac's weekly Primary Mortgage Market Survey.
How low can they go?
The 15-year FRM's average is as low as it's been in 18 years, averaging 4.32 percent this week and down from an average 4.40 percent last week. The average 15-year rate was 5.73 percent a year ago, said Freddie Mac.
"Interest rates on 30-year fixed rate mortgage loans fell for the third consecutive week to the lowest since the week ending May 21st, while 15-year fixed rates were the lowest since our records began in 1991," said Frank Nothaft, Freddie Mac vice president and chief economist.
Lower rates are music to the ears of refinancing homeowners who are switching to less risky fixed rates.
Low home prices, combined with lower rates, are sending more renters to rent-vs-buy calculators.
"For the fourth consecutive quarter, more than 95 percent of prime borrowers who originally had an ARM selected a conventional fixed rate mortgage in the third quarter of this year," Nothaft said.
The five-year Treasury-indexed hybrid adjustable rate mortgage (ARM) interest rate averaged 4.25 percent this week, down from 4.35 percent last week and 5.87 percent a year ago.
The one-year Treasury-indexed ARM came in at an average 4.35 percent, down from 4.47 percent last week and 5.29 percent a year ago.
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Mortgage interest rates continue to dip
by Broderick Perkins
DeadlineNews.Com
(11/17/09) Mortgage interest rates dipped as low as 4.32 percent, on conforming 30-year loans today. The average was 5.08 percent for fixed-rate mortgages (FRMS), while the high was 6.96 percent for the same loans.
The average was well off the 6.15 percent average a year ago, according to the weekly Interest Rate Review by Calabasas, CA-based Informa Research Services a market research, analysis, and intelligence gathering service for the financial industry.
Informa's National APR (annual percentage rates) numbers are tallied from a survey of 200 mortgage originators.
The average fixed rate has fallen for three consecutive weeks, on news of continued high unemployment and general economic malaise.
The average 15-year FRM was 4.51 percent compared to 5.92 percent a year ago.
The average rate for the 5/1adjustable rate mortgage (ARM), was 3.55 percent, down from 4.91 percent a year ago, Informa reported.
The FRM rates for 15- and 30-year mortgages and the 5/1 ARM rates are all based on a $200,000 purchase loan, with an 80 percent loan-to-value ratio, for an owner-occupied, single-family residence.
Informa also reports an average 6.07 percent fixed rate for 30-year, non-conforming jumbo loans, way down from 7.63 percent a year ago. The jumbo averages are based on a $450,000 purchase loan with an 80 percent loan-to-value ratio for an owner-occupied, single-family residence.
For a home equity lines of credit (HELOC) of $50,000 with an 80 percent loan to value note, the variable rate came in at an average 4.97 percent, up slightly from 4.8 percent a year ago.
Fixed rates on 15-year home equity loans of $50,000, with an 80 percent loan-to-value note, averaged 7.64 percent, compared to 8.01 percent a year ago, according to Informa's survey.
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30-year mortgage interest rates down 1.25 percentage points from a year ago
by Broderick Perkins
DeadlineNews.Com
If you purchased a home a year ago and have the equity and creditworthiness to swing it, a refinance today could save you hundreds of dollars a month.
Or, if you are in the market to buy a home, interest rates will make for a more affordable deal.
Freddie Mac's Primary Mortgage Market Survey today put the average fixed interest rate for 30-year conforming mortgages at 4.91 percent.
Last year at this time, the 30-year fixed rate mortgage (FRM) averaged 6.14 percent.
"Keeping rates at historically low levels for a sustained period of time has to remain a cornerstone of Fed policy until the economy gets back on track," said Nancy Osborne, chief operating officer of Erate.com.
On a $300,000 mortgage the principle and interest payment at today's average rate would be about $1,594, compared to $1,825 a year ago, according to Erate's calculators.
That's a monthly savings of $231. Put another way, a year's worth of the savings -- $2,772 -- amounts to almost two mortgage payments on a $300,000 mortgage at today's average rate.
Both home buyers and owners who want to refinance may have some time yet to shop around and dicker for the best interest rate deal.
"I don't suspect rates will begin to rise until we see at least three consecutive months of solid employment growth," Osborne said.
Freddie Mac also said the 15-year FRM averaged 4.36 percent, down from 5.81 percent a year ago.
Adjustable rate mortgages (ARMs)
The five-year Treasury-indexed hybrid adjustable rate mortgage (ARM) averaged 4.29 percent this week, down from 5.98 percent a year ago. The one-year Treasury-indexed ARM averaged 4.46 percent, down from 5.33 percent in 2009 at this time.
30 year fixed rates averaged 4.98%
(11-05-09)Per Freddie Mac mortgage rates were down across the board this week. The 30 year fixed rate averaged 4.98%, down 5 basis points from last week, with an average cost of 0.7 points and the 15 year fixed rate averaged 4.40%, down 6 basis points from last week at a cost of 0.6 points. Fixed rates continue to average less than 5.00% for the year to date, reflecting the lowest average on record.
Adjustable rate mortgages averaged 4.47% for the week on one-year treasury ARMs, down 10 basis points from the previous week, with an average cost of 0.5 points and for the five-year treasury, adjustable rates averaged 4.35% for the week, down 7 basis points from last week with a cost of 0.6 points.
Source: Freddie Mac’s (FHLMC) Weekly Primary Mortgage Rates Survey (PMMS®)
30 year conforming fixed mortgage rates
Rate data released 11-03-09
Fixed rate mortgages fell slightly this past week yet remained relatively flat over all. The 30 year conforming fixed rate averaged 5.18%, down 4/10ths of a percent from the prior week, while the 30 year jumbo fixed rate fell 5/10ths of a percent to an average rate of 6.02%. The 15 year conforming fixed rate averaged 4.60%, having fallen 3/10ths of a percent from the previous week. Note that the maximum conforming loan limit remains at $729,750 for certain designated high cost areas but is generally capped at $417,000. Rates on Home Equity Lines of Credit (HELOCs) rose slightly by 2/10ths of a percent to an average rate of 5.08%.
Certificates of Deposits (CD) remained unchanged from last week averaging 0.46% for a 6 month CD and 0.75% for a 12 month CD. Rates on Money Market accounts fell slightly by 1/10th of a percent to an average rate of 0.45%. Credit card rates were unchanged for platinum cardholders, averaging 6.61% as well as holding steady for basic reward cardholders averaging 7.79%. Rates on 4-year new auto loans also were unchanged, averaging 6.89%.
Source: Informa Research Services, Inc. Interest Rate Review®
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Interest Rate Review shows 30 Year Fixed Rates slightly higher
10/27/09 - Today Informa Research released their Weekly Interest Rate Review to ERATE. The Mortgage Lending Product Review shows a slight increase on Conforming 30 year fixed rate mortgages to 5.26% up from Oct 20th report of 5.22%. The Conforming 15 year fixed mortgage rate also increase to 4.68% up from last weeks 4.65%.
Disclosure: Mortgage Products - Fixed Rate Conforming (30- and 15-year): APRs are based on a $200,000 loan, owner-occupied, single-family residence, and an 80% loan-to-value ratio, on a purchase transaction.
National Average Long-Term Current Mortgage Rate Rises to 5 Percent
10-22-09McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.00 percent with an average 0.7 point for the week ending October 22, 2009, up from last week when it averaged 4.92 percent. Last year at this time, the 30-year FRM averaged 6.04 percent.
The 15-year FRM this week averaged 4.43 percent with an average 0.6 point, up from last week when it averaged 4.37 percent. A year ago at this time, the 15-year FRM averaged 5.72 percent.
Home Loan Applications on the Upswing Again
Sept. 23, 2009 - It is anticipated that fixed interest rates are likely to remain at low levels for at least the next six months as central bankers do not want to risk having a fragile economic recovery reverse course. The Fed has allocated $1.25 trillion to support the mortgage-backed securities market which is seen as essential in maintaining low mortgage rates. Low rates are a crucial factor in the transition to a long-term economic recovery and are critical to improving home affordability and generating sales within the housing sector. Home prices have been driven down sharply by the over-supply of foreclosure units available as only slightly over 35% of sales generated in recent months have involved non-distressed properties. The incentive provided through the first time buyer tax credit program has allowed home buyers to take advantage of an $8,000 credit. That program, in conjunction with sustained lower fixed interest rates, have helped stabilize housing demand, though much of it remains geared towards lower-end properties under $250,000 which are favored by both investors and first-time buyers.
Applications for home refinances increased over 17% last week as fixed interest rates fell below 5% for the first time since May of this year. The share of refinance loans overall, accounted for almost 64% of all mortgage loans originated. Purchase loan activity also grew 5.6% as the percentage of government-insured loans hit record levels not seen since the early 1990s. Disappointing existing home sales numbers were reported for the month of August as purchases fell 2.7%, yet they were still up almost 3.5% from the same period last year, having attained the second-highest level in the prior 23 months. Even better news, the inventory of unsold homes fell by 11% as it would currently take approximately 8.5 months to eliminate the supply of homes currently available for sale on the market. This is at the lowest level since April 2007 and a supply of 7 months of inventory has been historically associated with stabilizing homes prices.
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CURRENT MORTGAGE RATES DOWN FOR THIRD CONSECUTIVE WEEK
Shorter-Term Rates Are Mixed
Sept. 17, 2009 - McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.04 percent with an average 0.7 point for the week ending September 17, 2009, down from last week when it averaged 5.07 percent. Last year at this time, the 30-year FRM averaged 5.78 percent. The last time the 30-year FRM was lower was the week ending May 28, 2009, when it averaged 4.91 percent.
The 15-year FRM this week averaged 4.47 percent with an average 0.6 point, down from last week when it averaged 4.50 percent. A year ago at this time, the 15-year FRM averaged 5.35 percent. This is the lowest the 15-year FRM has been since Freddie Mac started tracking it in 1991.
MORTGAGE RATES CURRENTLY DOWN AMID CONCERNS OVER LABOR MARKET
July 9, 2009-McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM)averaged 5.20 percent with an average 0.7 point for the week ending July 9, 2009, down from last week when it averaged 5.32 percent. Last year at this time, the 30-year FRM averaged 6.37 percent.
The 15-year FRM this week averaged 4.69 percent with an average 0.7 point, down from last week when it averaged 4.77 percent. A year ago at this time, the 15-year FRM averaged 5.91 percent.
CURRENT MORTGAGE RATES MOSTLY FLAT AMID MIXED ECONOMIC NEWS
June 25, 2009 McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.42 percent with an average 0.7 point for the week ending June 25, 2009, up from last week when it averaged 5.38 percent. Last year at this time, the 30-year FRM averaged 6.45 percent.
The 15-year FRM this week averaged 4.87 percent with an average 0.7 point, down from last week when it averaged 4.89 percent. A year ago at this time, the 15-year FRM averaged 6.04 percent.
NOT MUCH CHANGE IN FIXED MORTGAGE RATES
But ARM Rates Are Lower
May 21, 2009 Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 4.86 percent with an average 0.6 point for the week ending May 14, 2009, up from last week when it averaged 4.84 percent. Last year at this time, the 30-year FRM averaged 6.01 percent.
The 15-year FRM this week averaged 4.52 percent with an average 0.6 point, up from last week when it averaged 4.51 percent. A year ago at this time, the 15-year FRM averaged 5.60 percent.
“Interest rates for fixed rate mortgages were little changed this week following the release of April’s employment figures,” said Frank Nothaft, Freddie Mac vice president and chief economist. “The economy lost 539,000 jobs, less than the monthly job loss of the past five months, and the unemployment rate rose to 8.9 percent. ARM rates, however, fell slightly over the period.
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Current Mortgage Rates Hit Record Low, Borrowing Spikes, and Home Sales Increase
March 26, 2009 - Long-term mortgage rates hit a record low this week, and the market finally heard some good news about the state of the housing union.
After the Federal Reserve announced an unprecedented plan to purchase Treasury securities and pump over $1 trillion into the U.S. financial system, the rate on 30-year fixed-rate mortgages hit an average of 4.85% for the week ending March 26. This is the lowest rate since Freddie Mac’s weekly survey began in 1971. (continued below)
(from above) At the same time, 15-year fixed-rate mortgages hit a record low of 4.58%, the lowest since Freddie Mac began tracking the mortgage option in 1991. Adjustable rate mortgages also dipped in borrowers’ favor.
The announcement by the Federal Reserve sparked these interest rate deductions, and borrowers have sat up and taken notice. Applications to refinance existing mortgages rose 41.5% last week, according to the Mortgage Bankers Association. All mortgage applications, including refinance and new purchases, were up a seasonally adjusted 32.2%.
The news on interest rates and increased borrowing applications this week coincided with the release of some more slightly encouraging news about the housing market. New home sales nationwide rebounded by 4.7% in February, according to the Commerce Department. After hitting a record low in January, sales of new homes rose to a seasonally adjusted annual rate of 337,000 last month, higher than initial economist expectations.
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At the same time, existing home sales rose 5.1% in February, boosted by “deep” discounts, according the National Association of Realtors. It was the largest percentage gain since July 2003.
Accounting for the majority of the sales were distressed homes, including foreclosed properties or short sales, all selling for 20% below normal market prices. As a result, the media sales price of existing homes dropped 15.5% in the past year to $165,400, the second-largest year-over-year decline on record.
This continuation of home price drops, along with rising inventories of unsold homes, continue to hold the housing market in a vise grip. But the increase in sales, and the surge in borrowing due to interest rate cuts, are some good news to hang on to.
For Further Reading:
Existing-home sales rise on 'deep' discounting
New-home sales rebound after record low in January
Mortgage rates hit record low 30-year fixed-rate mortgage now averaging 4.85%: Freddie Mac
Mortgage Rates Little Changed This Week
03-05-2009 - McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.07 percent with an average 0.7 point for the week ending February 26, 2009, up from last week when it averaged 5.04 percent. Last year at this time, the 30-year FRM averaged 6.24 percent.
The 15-year FRM this week averaged 4.68 percent with an average 0.7 point, unchanged from last week when it averaged 4.68 percent. A year ago at this time, the 15-year FRM averaged 5.72 percent.
Lower Fixed Mortgage Rates Translate Into Large Volume of Refinancing
02-12-2009 McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.16 percent with an average 0.7 point for the week ending February 12, 2009, down from last week when it averaged 5.25 percent. Last year at this time, the 30-year FRM averaged 5.72 percent.
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The 15-year FRM this week averaged 4.81 percent with an average 0.7 point, down from last week when it averaged 4.92 percent. A year ago at this time, the 15-year FRM averaged 5.25 percent.
"Interest rates for 30-year fixed-rate mortgages are almost 1.5 percentage points below 2008's peak set on July 24, 2008, offering many homeowners an incentive to refinance," said Frank Nothaft, Freddie Mac vice president and chief economist. "This would translate into a monthly payment savings of around $188 on a $200,000 mortgage.
Current 30 Year Rates Fall For Tenth Consecutive Week Setting Another New Low
1-08-09 McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.01 percent with an average 0.6 point for the week ending January 8, 2009, down from last week when it averaged 5.10 percent. Last year at this time, the 30-year FRM averaged 5.87 percent. The 30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.
30 Year Fixed Rates Fall For Ninth Consecutive Week Setting Another New Low
12-31-08 McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.10 percent with an average 0.7 point for the week ending December 31, 2008, down from last week when it averaged 5.14 percent. Last year at this time, the 30-year FRM averaged 6.07 percent. The 30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.
The 15-year FRM this week averaged 4.83 percent with an average 0.7 point, down from last week when it averaged 4.91 percent. A year ago at this time, the 15-year FRM averaged 5.68 percent. The 15-year FRM has not been lower since March 25, 2004, when it averaged 4.70 percent.
30 Year Fixed Rates Drop Further
12-24-08 McLean, VA – Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.14 percent with an average 0.8 point for the week ending December 24, 2008, downfrom last week when it averaged 5.19 percent. Last year at this time, the 30-year Fixed Rate Mortgage averaged 6.17 percent. The 30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.
The 15-year FRM this week averaged 4.91 percent with an average 0.7 point, down from last week when it averaged 4.92 percent. A year ago at this time, the 15-year FRM averaged 5.79 percent. The 15-year FRM has not been lower since April 1, 2004, when it averaged 4.84 percent.
"Interest rates on 30-year fixed-rate mortgages eased for the eighth straight week and set another record low since Freddie Mac's survey began in 1971," said Frank Nothaft, Freddie Mac vice president and chief economist.
Current 30 year fixed rate mortgage at 37 year low
12-18-08 "Interest rates for 30-year fixed-rate mortgage rates fell for the seventh consecutive week, moving these rates to the lowest since the survey began in April 1971," said Frank Nothaft, Freddie Mac chief economist. "The decline was supported by the Federal Reserve announcement on Dec. 16, when it cut the federal funds target to a record low and stated it stood ready to expand its purchases of mortgage-related assets as conditions warrant."
Interest Rate Cut to 4.5% Proposed for New Home Loans;
30 Year Fixed Rates Fall to 4 Year Low
Dec 11, 2008 - In a new proposed plan to spur home sales, boost the housing market, and stem foreclosures, the Treasury Department is considering cutting mortgage rates for new home loans to 4.5%. (full story continued below)
The plan would work with Fannie Mae and Freddie Mac to offer mortgages with these low rates, undercutting current mortgage rates by nearly 1 percentage point. The Treasury Department is considering the plan as part of their continuing efforts to cut down on foreclosures, and find a solution without bailouts.
Industry analysts applauded the plan, noting that lower rates would provide support to the housing market and new buyers. But some wished the plan would go further, offering refinancing opportunities to those homeowners in a bind.
In other interest rate news, 30-year mortgage rates continued their decline and hit the lowest rates in 4 and ½ years. Freddie Mac said fixed rates on 30-year mortgages averaged 5.47 percent for the week ending Dec. 11.
Mortgage rates have been falling since November 25th, when the current administration announced an additional $800 billion pumped into credit markets in efforts to unfreeze consumer and mortgage lending. The administration decided to buy up to $600 billion of mortgage-related securities and other debt issued by Fannie, Freddie and the Federal Home Loan Banks as part of this cash infusion. Rates dropped below the 6 percent mark after that announcement, and have been dropping since. The new 30-year rate has not been this low since March 25th, 2004, when it averaged 5.40 percent.
Some analysts are predicting that continuing government efforts to ease the credit crunch and jumpstart the housing market could eventually push mortgage rates below 4%. The drastically low rate would be a direct result of housing demand plummeting. With the economy in dire straits, total home sales in 20 major U.S. markets dropped 65 percent in October over 2007 figures. Cancellations of new home purchases have skyrocketed as well.
Chart of Payments for 4.50% Mortgage Rates |
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Loan Amount |
Rate |
Years |
Monthly Payment |
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$100,000 |
4.5% |
30 |
$507 |
|
$150,000 |
4.5% |
30 |
$760 |
|
$200,000 |
4.5% |
30 |
$1,013 |
|
$250,000 |
4.5% |
30 |
$1,267 |
|
$300,000 |
4.5% |
30 |
$1,520 |
|
$350,000 |
4.5% |
30 |
$1,773 |
|
$400,000 |
4.5% |
30 |
$2,027 |
|
$450,000 |
4.5% |
30 |
$2,280 |
|
$500,000 |
4.5% |
30 |
$2,533 |
|
$600,000 |
4.5% |
30 |
$3,040 |
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Mortgage Rates - 30 Year Fixed Mortgage Rates & 15 Year
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What the Fed’s Coordinated Emergency Rate Cut Means for Consumers Source: Informa Research Services (An ERATE partner) Oct 8, 2008 - Today, as part of a worldwide effort to ease the effects of the current economy, the Federal Reserve Board enacted an emergency interest rate cut of 50 basis points. The Fed funds rate is the key interest rate used to influence market conditions. This cut leaves the Fed rate at 1.50%. Informa Research Services, Inc. informs consumers about what to do in these rare economic circumstances. This is the second time this year the Fed rate has been adjusted prior to a scheduled Fed Board meeting. The last unscheduled cut was made January 22 when the key interest rate was cut by 75 basis points to 3.50%. While there is no direct link between the Fed rate and mortgage rates, historically, mortgage rates have tended to follow the Fed rate. However, as of late, that has not been the case. Thus, the best bet for consumers is to check online rate tables regularly to keep an eye on where rates are and where they might be going. If mortgage rates fall as a result of this move by the Fed, it may be a good opportunity for consumers to purchase or refinance their home. First time homebuyers may find it is a good time to purchase, especially with homes becoming more affordable. To ensure they are getting the best deal for their unique situation, consumers should do their research and shop around before choosing a loan product. Consumers should take their time and do their research before rushing into any lending decisions. They should look for the best possible deal that suits their financial situation.
Freddie and Fannie Won't Fall, But Will Mortgage Rates?Source: Informa Research Services (An ERATE partner) In light of the U.S. Department of Treasury's action to place government sponsored enterprises, Freddie Mac and Fannie Mae, into a conservatorship, one has to wonder, "What does this mean for me?" Many experts have speculated that this decision could lead to lower rates on various mortgage products. Thus far, there has been no overwhelmingly significant change in rates overall. Over the past week, the average rate 30-year fixed rate mortgages offered by major financial institutions have dropped 22.6 basis points from 6.761% to 6.535% according to Informa Research Services. If rates continue to drop due to this takeover, this may create some excellent opportunities for homeowners and prospective buyers alike. For homeowners who have been waiting to refinance their mortgage, this may be a good opportunity to take advantage of lower rates. To ensure you secure the best deal, be sure to shop for the best rates. To qualify for the best rates, be sure to maintain excellent credit. To keep tabs on your credit, look into free credit monitoring tools, such as Credit Karma (www.creditkarma.com). Credit Karma allows users to securely check and monitor their credit score on a regular basis. No one can say for sure exactly how the takeover of Fannie Mae and Freddie Mac will affect rates long term, but the best way to stay on top of rate trends is to check rates regularly. By using online rate comparison tables, checking rate trends is only a click away!
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