Tag Archives: Mortgage Rates

Housing inventory is now at its lowest level since January 1994; home sales have exceeded listings for the past 25 months; and the upward trajectory in home prices starting at the end of last year continues, according to the latest ""US Housing Market Monthly"" from Capital Economics. Home sales are ""normal"" relative to population, but supply remains low, according to the firm. House prices increased 9.7 percent year-over-year in January, continuing a recent trend, and prices show ""no signs of an imminent slowdown,"" according to Capital Economics.

Mortgages originated from 2010 and into early 2012 are seeing elevated prepayment rates as low mortgage rates continue to encourage refinance activity, Fitch Ratings explained in a recent report. Despite the high levels of prepayment activity, the rating agency suggested ""the credit implications have been modest to date due to the high overall credit quality of the original pools."" According to Fitch, prime RMBS mortgage pools issued since 2010 had an average conditional prepayment rate (CPR) of about 42 percent.

Freddie Mac's Primary Mortgage Market Survey indicated little to no movement in fixed rates for the week ending March 7. According to Freddie Mac's readings, the 30-year fixed-rate mortgage (FRM) averaged 3.52 percent (0.7 point) this week, up slightly from the previous 3.51 percent average. Last year at this time, the 30-year FRM averaged 3.88 percent. Meanwhile, Bankrate.com reported no movement in any of its three major metrics, with all of them reading the same as last week.

Mortgage rates finally broke their holding pattern this week, pulling back as reports demonstrated the housing market's ongoing strength and the global economy's precariousness. According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 3.51 percent (0.8 point) for the week ending February 28, dropping from 3.56 percent previously. Last year at this time, the 30-year FRM averaged 3.90 percent. Bankrate.com's weekly national survey showed rates falling to five-week lows.

Federal Reserve Chairman Ben Bernanke underscored benefits of the Fed's quantitative easing policy while also pointing to associated costs and risks in his written testimony to Senators Tuesday. According to Bernanke, the benefits of the purchase and policy accommodation are clear. ""Monetary policy is providing important support to the recovery while keeping inflation close to the FOMC's 2 percent objective. Notably, keeping longer-term interest rates low has helped spark recovery in the housing market and led to increased sales and production of automobiles and other durable goods,"" he said.

Fixed mortgage rates moved up just a smidgen this week, according to surveys from Freddie Mac and Bankrate.com. According to Freddie Mac's Primary Mortgage Market Survey, the average interest rate for a 30-year fixed-rate mortgage (FRM) was 3.56 percent (0.8 point) for the week ending February 21, up from 3.53 percent last week. Last year at this time, the 30-year FRM averaged 3.95 percent. Meanwhile, Bankrate's findings showed the 30-year fixed rate rising a single basis point to 3.80 percent.

Fixed mortgage rates continued to hold steady this week, according to data from Freddie Mac and Bankrate.com. Freddie Mac's Primary Mortgage Market Survey for the week ending February 14 showed no weekly changes in fixed rates: The 30-year fixed averaged 3.53 percent (0.8 point), while the 15-year average held at 2.77 percent (0.8 point). Meanwhile, Bankrate reported slight increases in fixed rates, though any movement was minor. According to Bankrate's survey, the average 30-year fixed-rate mortgage had a rate of 3.79 percent.

After spiking last week, fixed mortgage rates held their ground this week as the economy showed signs of stability, at least for the near future. According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 3.53 percent (0.8 point) for the week ending February 7, unchanged from last week. This time last year, the average FRM was 3.87 percent. Bankrate reported similar findings: The 30-year fixed average was 3.76 percent, down a single basis point from last week.

Fixed mortgage rates took a major leap up this week amid news of a growing economy led in part by the recovering housing market. According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) rate averaged 3.53 percent (0.7 point) for the final week of January, up from 3.42 percent last week. The last time the 30-year fixed rate averaged above 3.5 percent was in September 2012. The 15-year fixed average also increased significantly, rising 10 basis points to 2.81 percent (0.7 point).

Positive economic and housing news lifted fixed mortgage rates to their highest level in months this week. According to Freddie Mac&'s Primary Mortgage Market Survey, the average interest rate for a 30-year fixed-rate mortgage (FRM) was 3.42 (0.7 point) for the week ending January 24, up from 3.38 percent last week. The last time the average 30-year reading was this high was September 29 of last year, Freddie Mac said. The 15-year fixed average also rose, climbing to 2.67 percent (0.7 point) from 2.66 percent previously.