How Will Rising Rates Affect Your Mortgage Decision?

Long-term interest rates on U.S. mortgages jumped the most this week in 26 years, according to data from Freddie Mac, with the average rate on a 30-year conventional, fixed-rate loan skyrocketing to 4.46 percent, up from 3.93 percent the week before. Rates have not been that high in roughly two years and have not made such a steep weekly jump since 1987. “Following Fed chief [Ben] Bernanke's remarks on June 19th about the possible timing of reduced bond purchases, Treasury bond yields jumped Read more [...]

Mortgage Rates Are Rising – How Much Does It Matter?

Interest rates on long-term mortgage loans have jumped dramatically in the past couple months, as the Federal Reserve has hinted that it will ease up on its rate-dampening actions sooner than later. The average rate on a 30-year fixed rate mortgage rose to 3.98 percent last week, according to mortgage giant Freddie Mac, up from a recent low of 3.35 percent during the week of May 2, just seven weeks before. The jump in rates has pushed many reluctant buyers and refinancers to get into the market Read more [...]

HSH: Tepid Economic Growth Will Keep Mortgage Rates Stagnate

The latest two-month mortgage rate forecast has just been released from loan information company HSH.com and after months of bumping along the bottom with record-low rates, the new prediction says - drum roll please - nothing will change. Hmm, not exactly earth-shattering, but good to know anyway. HSH is forecasting that mortgage interest rates on 30-year conforming fixed rate loans will remain in the range of 3.42 percent to 3.64 percent between now and January 11. During the past two months, Read more [...]

MBA: Record Low Mortgage Rates to Last into 2014

Mortgage interest rates are likely to stay right near historic lows through the next two years, according to a recent forecast from the Mortgage Bankers Association, and mortgage loan origination will probably pick up as the unemployment rate improves. The MBA in its October Economic and Mortgage Finance Commentary forecasted that interest rates on fixed rate loans will move upwards to about 3.8 percent by the end of the year, rising to 4.1 throughout 2013 and up to 4.5 in 2014. Even with a rising Read more [...]

Mortgage Rates Take Another Dive to All-Time Lows

Investors continued to flee to the security of U.S. Treasury bonds this past week, pushing long-term mortgage interest rates down again to new record lows, according to mortgage finance company Freddie Mac. The average rate on a 30-year fixed rate mortgage, excluding fees, fell to 3.78 percent during the week ended May 24, down from 3.79 percent, the previous all-time low. The current rate is the lowest on record for Freddie Mac's 41 years of rate surveys. The average rate on a 15-year fixed Read more [...]

Borrowers Stick with Safe and Steady Mortgages

Homeowners are turning almost exclusively to fixed rate loans for their refinance needs, according to new data from mortgage finance company Freddie Mac. Of all the refinance loans made in the first quarter of 2012, 95 percent of them were fixed rate mortgages, indicating borrowers desire for security and the attractiveness of long-term interest rates right now. Those who already had a hybrid adjustable rate mortgage (ARM) tended to feel a bit more comfortable sticking with them, but still largely Read more [...]

Existing Home Sales Drop in March

Sales of existing U.S. home fell in March, according to the latest data from the National Association of Realtors (NAR), although sales and prices are up compared with the previous year. March sales decreased 2.6 percent to a seasonally adjusted annual pace of 4.48 million homes, down from February's upwardly revised 4.60 million. Yet the new sales rate is up 5.2 percent from the 4.26 million pace from March 2011. The NAR was very optimistic about the yearly growth. "The recovery is happening Read more [...]

Mortgage Interest Rates Hit New Record Low

Interest rates on long-term mortgage loans fell to a new all-time record low this week, according to mortgage finance company Freddie Mac, as investors responded to troubling economic news. The average rate on a 30-year fixed rate loan, excluding points, dropped to 3.87 percent, the lowest rate on record in Freddie Mac's 40-plus year mortgage survey. Last week, the average rate had jumped to 3.98 percent up from the previous week and former low of 3.88 percent. Rates have averaged under 4 percent Read more [...]

Refi after One Year?

Typically people don't refinance a mortgage for several years after receiving the original one. It's usually just too expensive. Yet a recent article on the Wall Street Journal website said that since rates have dropped so dramatically low in the past 12 months even those who bought homes or refinanced their mortgages in the past year should consider refinancing again. The average interest rate on a 30-year fixed rate mortgage loan has averaged below 4.25 percent for almost a month now - a rate Read more [...]

Fifteen-Year Mortgages Gaining Market Share

Are consumers actually turning over a new financial leaf, or are they just crazy-excited about getting a mortgage interest rate below three percent? That might be what you wonder now that more and more homeowners are refinancing into 15-year mortgage loans. According to data company CoreLogic, 26 percent of all homeowners who refinanced in the first half of this year opted for a 15-year fixed-rate mortgage rather than the traditional 30-year loan. Compare that with 18.5 percent for all of 2009. Read more [...]