Tag Archives: Mortgage Rates

Freddie Mac said Thursday that mortgage interest rates, while mixed this week, held steady at low levels for the second straight week. The 30-year fixed rate matched last week's 4.50 percent average, while the 15-year rate edged up to 3.69 percent.

Federal Reserve Chairman Ben Bernanke says its all the distress in the housing sector that's pulling home prices and consumer confidence down and keeping buyers away from the market, despite the fact that the Fed's bond-buying program has succeeded in keeping interest rates low and housing affordable. Bernanke says he'd like to see more efforts to modify loans, but when that's not appropriate, the industry needs to speed up the process of foreclosure and disposition to clear the market.

John Burns Real Estate Consulting released a housing report card Thursday that confirms most key market indicators trending southerly, signaling more distress may be in store. The research firm notes that annual resale activity within the existing-home market has slipped to just over 5 million residences, and home prices by some measurements have dropped to 2002 levels. With these numbers, the firm says, affordability has never been better for entry-level buyers, or worse for move-up and move-down buyers.

Freddie Mac released its weekly survey of mortgage interest rates Thursday, which showed that the 30-year rate edged up 1 basis point while the 15-year rate dropped 1 basis point. The GSE's measurements for adjustable-rate mortgages (ARMs) - which have been gaining popularity among some borrowers - mirrored the same, with rates on the 5-year ARM slipping and the 1-year ARM rising slightly.

According to Freddie Mac's latest market outlook, over the first four months of 2011, sales of existing homes are up 5 percent from the pace of 2010 - in line with the GSE's earlier projections of a 5 percent annual increase in existing-home sales this year. Regardless, Freddie's economists say going forward, their forecast for sales growth remains dampened by declining consumer confidence and economic uncertainty. They point out that news of still-falling home prices has potential homebuyers waiting for a clear signal that home values have firmed.

Weaker than expected job growth in May pushed both fixed- and adjustable-rate mortgages to new lows for the year, Freddie Mac reported Thursday. The GSE's study, which is based on data collected from about 125 lenders across the country, put the 30-year rate at 4.49 percent and the 15-year at 3.68 percent.

The cost of borrowing for a fixed-rate home loan has slipped to its lowest level of the year yet again. Fixed mortgage rates dropped this week amid weak economic and housing reports, marking the seventh consecutive week they've headed lower. Market data released Thursday by Freddie Mac puts the 30-year fixed-rate at 4.55 percent and the 15-year at 3.74 percent.

Freddie Mac released the results of its latest mortgage rate survey on Thursday, which shows slower economic activity pushing fixed-rate mortgages slightly lower for the sixth consecutive week. The GSE says the 30-year mortgage is now averaging 4.60 percent and the 15-year rate is at 3.78 percent -- both new lows for 2011. Adjustable-rate mortgages (ARMs) also dropped this week.

The U.S. housing market could experience a severe double-dip contraction marked by lower home sales and depressed house prices if Congress fails to raise the federal debt ceiling, according to the Center for American Progress, a nonprofit research group. The Center says inaction to raise the debt limit would spark a return of the economic pain of the past few years as foreclosures would remain at record highs for an even longer stretch. Not raising the limit by early August threatens to put the U.S. itself on the verge of default.

Fannie Mae's latest market outlook continues to call for a ""modest improvement"" in housing activity this year, although the prevalence of distressed properties on the market has led to renewed weakness in home prices and the industry's shadow inventory looms large. The GSE's chief economist notes that as the economic recovery approaches its two-year anniversary in June, housing has not yet contributed to economic growth in any meaningful way and is significantly underperforming compared to previous market recoveries.