Tag Archives: Mortgage Rates

New homes sales fell 1.6 percent in February to a seasonally adjusted annual rate of 313,000, the second straight monthly decline, the Commerce Department and Department of Housing and Urban Development reported jointly Friday. Sales for January were revised downward from 321,000 to 318,000.

Moving along side higher yields on bonds, mortgage rates continued to climb upwards, with the 30-year fixed-rate mortgage above the 4 percent benchmark for the first time since October 27, 2011, according Freddie Mac's Primary Mortgage Market Survey. The 30-year fixed-rate mortgage averaged 4.08 percent for the week ending March 22. Frank Nothaft, chief economist for Freddie Mac, attributed an improving assessment of the state of the economy by the Fed, better than expected results of the bank stress tests, and the likelihood of a second bailout for Greece as reasons for higher bond yields.

Even with recent reports of rising mortgage rates and falling home prices, Capital Economics stated it still expects the housing recovery to be under way. The research firm cites two reasons in a report on why mortgage rates won't threaten recovery: rates can only rise so far when tighter monetary policy is still years away, and homes will still be affordable even if mortgage rates were to rise back to normal levels. Capital Economics notes that over the last six months, total home sales have increased by 13 percent.

Rates for all mortgage loan products headed higher this week as positive employment indicators rolled in, with job growth over the last six months the strongest it's been since 2006. That, coupled with the Greek debt restructuring on the international front and the results of the Federal Reserve's stress tests pointing to a stronger U.S. banking system, boosted investor confidence and drove bond yields higher. Studies from both Freddie Mac and Bankrate showed the same measurable increases in rates across-the-board.

Record high-levels of homebuyer affordability continues as rates drop and stay near their 60-year lows, according to Freddie Mac's Primary Mortgage Market Survey. The 15-year fixed, hit an all-time record low of 3.13 percent. Aside from the 1-year ARM, all rates saw a decrease. The 30-year fixed-rate mortgage averaged 3.88 percent (0.8 point) for the week ending March 8, a decreased compared to last week's average of 3.90 percent. Last year at this time, the 30-year rate averaged 4.88 percent. The 5-year ARM decreased at 2.81 percent (0.7 point). Last week it averaged 2.83 percent and 3.73 percent a year ago at this time.

Home affordability has reached the highest peak ever since 1970, which is when the data was first recorded, according to National Association of Realtor's (NAR) housing affordability index. The index rose to a record high of 206.1 in January. While projections about future mortgage rates and home prices have been mixed, NAR expects little change and anticipates affordability levels will stay high through 2012.

The housing market is healing, a Capital Economics report stated, but the road to recovery will be a long and gradual one. The research firm expects to see home sales and homebuilding continue with increases, while house prices are expected to finally stop falling later this year. While certain areas of the housing market appear to be moving in a positive direction, Capital Economics still points out that with the growth come constraints, such as Eurozone issues and tightened lending standards.

Fixed mortgage rates moved slightly lower for the week and are still hovering around the near 60-year lows, according to the Primary Mortgage Market Survey released by Freddie Mac. This week, the 30-year fixed-rate mortgage averaged 3.90 (0.8 point) percent, down from last week when it was 3.95 percent.

After hitting near record lows last week, the 30-year fixed-rate mortgage moved up for the first time in three weeks, according to the Primary Mortgage Market Survey from Freddie Mac. The 30-year rate averaged 3.95 percent (0.8 point) for the week ending February 23, up from last week's average at 3.87. The rate is still lower than the average of 4.95 percent from a year ago at this time.

Freddie Mac sees cautious signs of improvement in the housing market and overall economy and expects more warmth in 2013, according to its latest monthly outlook. ""The US economy continues to build on the momentum from the end of last year,"" said Freddie Mac VP and chief economist, Frank Nothaft. Positive signs Freddie cites include job gains, declining unemployment, and high affordability.