Tag Archives: Mortgage Rates

Turbulent financial markets served to push mortgage interest rates to new lows this week. Despite the much-ballyhooed downgrade by S&P, investors made a run on Treasuries to send yields plummeting, and the Federal Reserve pledged to keep a key interest rate near zero for two years. Both had a profound effect on mortgage rate trajectories. Freddie Mac puts the 30-year fixed rate at 4.32 percent, a new low for 2011, with the 15-year fixed and adjustable-rate mortgages setting all-time record lows.

The Federal Reserve put a conditional timestamp on its interest rate policy Tuesday - a different voice from the ""extended period"" mantra heard from the U.S. central bank for the past two-and-a-half years. The Fed's board again voted to hold the target range for the rate at which banks lend to one another at 0 to 0.25 percent, but this time they included an advisory that the rate would remain at this level for the next two years. Officials cited the ""depressed"" state of the housing market as one of the economy's biggest hindrances.

Congress' last-minute accord to avert a default wasn't enough to save the United States' top rating from Standard & Poor's. The agency downgraded the long-term credit rating of the U.S. to AA+, a grade just below the AAA rating the U.S. had held for 70 years. Analysts were expecting a temporary spike in Treasury yields, which are closely tied to mortgage rate trajectories, but investors responded with a rush on Treasuries, pushing yields down 13 basis points. Fannie Mae, Freddie Mac, and the Federal Home Loan Banks also had their S&P ratings lowered to AA+ on Monday.

Freddie Mac released the results of its weekly rate survey Thursday, showing mortgage rates have dropped sharply over the past few days amid falling bond yields and signs of a weaker-than-expected economy. The 30-year fixed-rate mortgage has declined to its lowest level for 2011, while both the 15-year fixed mortgage and 5-year adjustable-rate mortgage (ARM) set new historical record lows. Of the four loan types the GSE assesses, only the 1-year ARM failed to post a decline this week.

Data released by Freddie Mac Thursday shows that amid mixed economic reports and ongoing debate over the nation's debt, the average rate for a 30-year fixed mortgage edged up ever so slightly this week but hit its highest mark in three weeks. Rates for adjustable-rate mortgages, on the other hand, inched down to a three-week low. The 15-year fixed-rate mortgage remained unchanged from a week earlier.

Interest rates on fixed-rate mortgage loans inched up this week amid mixed economic data, according to Freddie Mac. The GSE's weekly survey puts the average 30-year fixed rate at 4.52 percent for the week ending July 21, and the 15-year rate at 3.66 percent. Adjustable-rate mortgages (ARMs) were mixed in Freddie's latest survey. The company's analysts calculate average interest rates based on data from about 125 lenders across the country.

As unemployment increased, mortgage rates decreased for the week ending July 14, according to Freddie Mac's weekly report released Thursday. ""Long-term bond yields and mortgage rates fell this week following a weak employment report,"" said Frank Nothaft, vice president and chief economist, Freddie Mac. ""The economy added 18,000 jobs in June, well below the market consensus forecast, and the unemployment rate rose to 9.2 percent, the highest since December 2010,"" he added.

After changing little over the past month, both long- and short-term mortgage rates rose this week, with some loan products increasing in the range of 10 basis points. The 30-year fixed rate averaged 4.60 percent, while the 15-year fixed came in at 3.75 percent. Adjustable-rate mortgage also headed higher. Freddie Mac explained that mortgage rates followed Treasury yields higher this week, but the company says borrowing costs remain quite affordable by historical standards.

HUD announced a revised Notice of Disclosure form that emphasizes the rights of active duty military and their dependents who are protected under the Servicemembers Civil Relief Act (SCRA). Under the SCRA, military personnel on active duty are entitled to mortgage relief, including a lower interest rate on their mortgages and foreclosure protection. HUD says it is the lender's responsibility to determine military status in connection with a foreclosure.

For the fourth week in a row, 30-year fixed mortgage rates held steady at just above 4.5 percent, according to Freddie Mac's Primary Mortgage Market Survey, released Thursday. Freddie Mac calculates average interest rates based on data from about 125 lenders across the country. The 15-year rate remained unchanged from last week while the 5-year adjustable-rate mortgage dropped to a new record low.