Tag Archives: Mortgage Rates

Financial markets reacted to the Federal Reserve's announced stimulus last week, with investors dumping their money in more safe-haven Treasury debt, lowering mortgage rates accordingly. According to real estate website Zillow, which releases weekly surveys on the subject, the 30-year fixed-rate mortgage fell from 3.38 percent to 3.34 percent last week. Rates for the 15-year home loan slid to 2.71 percent, while those for 5-year and 1-year adjustable-rate mortgages inched down to 2.45 percent.

The Federal Open Market Committee announced Thursday a new plan to stimulate a moribund economy continuing two earlier plans which at best stopped the economy from contracting. The FOMC said it would keep the federal funds rate near zero into mid-2015, six months longer than it had said previously. Separately, later in the day, the Fed issued its projections for the economy out to 2015, a more optimistic outlook than previous forecasts. The Fed painted a grim picture of the economy.

While Americans may be feeling pain at the pumps, Freddie Mac doesn├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ót believe the recent increase in gas prices will have a huge impact on the economy. In the GSE├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós most recent U.S. Economic and Housing Market Outlook, Freddie Mac VP and chief economist Frank Nothaft looked at energy costs and their potential effects on the economic recovery. The U.S. Department of Energy reported that gas prices averaged $3.84 per gallon on September 3, up about $0.50 over the past two months.

Mortgage applications shot up 11.1 percent from the week before, according to the Mortgage Bankers Association. The trade group found that mortgage loan volume fell by 12 percent on a seasonally unadjusted basis from the week before. According to their indices, refinance volume and purchases went up 12 percent and 8 percent, respectively. Purchases fell more than 15 percent on an unadjusted basis, although it stayed 7 percent higher than figures seen at the same time last year.

Interest rates for home loans climbed higher this week, just as the European Central Bank intervened to shore up the struggling economy overseas with more euro bonds and a weak jobs report quieted investors abroad. Real estate website Zillow reported that the 30-year fixed-rate mortgage ticked up to 3.38 percent, up two basis points from 3.36 last week. The benchmark home loan had fallen and hovered somewhere between 3.36 percent and 3.41 percent over the weekend. Interest rates for the 15-year fixed-rate mortgage went up to 2.75 percent.

Lawmakers introduced a new bill on Monday with plans to once more revamp the Home Affordable Refinance Program for current borrowers with eligible loans with Fannie Mae and Freddie Mac. Sens. Barbara Boxer and Robert Menendez, among others, drafted the Responsible Homeowner Refinancing Act to increase lender competition, open up refinance opportunities to all current borrowers with government-backed mortgages, and strike through appraisal costs and upfront fees on home loans. If the bill passes the House, lenders will begin to compete more often with other lenders.

Mortgage applications fell 2.5 percent last week, according to the Mortgage Bankers Association. The trade group found application volume declining by 3 percent on a seasonally unadjusted basis. Purchases fell 0.8 percent from the week before and 3 percent on a seasonally unadjusted basis. The refinance share of mortgage activity stayed the same from last week, hovering at 79 percent, with the adjustable-rate mortgage share of activity ticking up to 5 percent of total volume. Interest rates for fixed-rate mortgages by and large fell with volume.

Mortgage rates held steady above record lows this week, as the debt crisis in Europe threatened to upend an increasingly more favorable economic climate. Zillow reported that the 30-year fixed-rate mortgage hovered old lows at 3.36 percent, only after dipping from 3.39 percent last week. Interest rates for 15-year home loans currently average 2.73 percent, while those for 5-year and 1-year adjustable-rate mortgages stay near 2.35 percent. The debt crisis in Europe continues to feed uncertainty for investors interested in stability.

After a month of weekly increases, mortgage rates followed Treasury bond yields down this week. Freddie Mac reported that the 30-year fixed averaged 3.59 percent (0.6 point) for the week ending August 30, down from 3.66 percent in the previous week├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós survey. The 15-year fixed also fell, dropping to 2.86 percent from 2.89 percent. In addition, both the 5-year and 1-year adjustable rate mortgage averages fell, declining to 2.78 percent and 2.63 percent, respectively.

Just when you thought they were on a rebound, mortgage rates once again fell precipitously this week, with the 30-year fixed-rate home loan slamming into 3.39 percent. Zillow reported the latest numbers on Tuesday. The real estate website found the 30-year fixed-rate mortgage slipping from 3.5 percent to 3.4 percent earlier this week. Interest rates for the 15-year home loan averaged 2.76 percent, while those for 5-year and 1-year adjustable-rate mortgages hovered at 2.38 percent.