Tag Archives: Adjustable-Rate Mortgage

Softening trends in the housing market brought fixed mortgage rates to their lowest level since June last week, according to data from Freddie Mac.

Continued speculation surrounding the Federal Reserve├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós bond purchase program drove long-term mortgages rates down this week, according to reports from Freddie Mac and Bankrate.com. Frank Nothaft, VP and chief economist at Freddie Mac, noted the decrease in fixed rates was likely the result of disappointing numbers for new home sales in July. While Bankrate also pointed to new home sales as a factor in this week's rate movements, developments abroad may have figured in, as well.

Fixed mortgage rates jumped this week as markets awaited the release of minutes from the Federal Open Market Committee's (FOMC) July meeting, which contained hints of when the Federal Reserve might start reducing its bond purchases. According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 4.58 percent (0.8 point) for the week ending August 22, up from last week's 4.40 percent. Meanwhile, Bankrate.com reported a two-year high for the 30-year fixed average in its own weekly survey.

Having spent the last several months bouncing around, average fixed mortgage rates were little changed over the last week as market speculation settled.

Freddie Mac found that among refinances in the second quarter, 79 percent of homeowners with adjustable-rate mortgages (ARMs) switched to fixed-rate loans.

Mortgage rates, loan values, loan terms, and loan-to-price ratios all rose in March, according to a report released by the Federal Housing Finance Agency (FHFA).

Data released by Freddie Mac shows more than a quarter of borrowers who refinanced in Q4 2012 chose to shorten their loan terms.

After steadily dropping throughout the year, mortgage rates closed out 2012 with one final monthly decline, according to the Federal Housing Finance Agency's (FHFA) December index. The contract rate on the composite of all mortgage loans (both fixed- and adjustable-rate) was 3.28 percent in December, down from 3.36 percent in November. The effective interest rate, which reflects the amortization of initial fees and charges, was 3.42 percent, down from 3.49 percent the previous month.

Mortgage applications increased 11.7 percent for the week ending January 4, with refinances rising 12 percent and purchase applications up 10 percent.

A new study from Fannie Mae suggests that many Americans fail to do their homework when considering mortgage options.