"Lending rates will also spike as the government withdraws its trillion-dollar support of the mortgage market in the spring," says an article in the New York Times on 1/1/10.
This might argue for home buyers to act before this happens so they can lock in historically low interest rates. Sellers may also want to consider selling sooner rather than later as rising rates could adversely affect home values.
"As banks enjoy a recovery, lending may slow further as the Federal Reserve shifts its focus from spurring growth to heading off inflation, reversing the current period of ultralow interest rates that has been a boon to banks. Right now, low rates are fattening banks’ profit margins, since many lenders are not passing on their own low costs to borrowers. Lending rates will also spike as the government withdraws its trillion-dollar support of the mortgage market in the spring."
Here's the link to the full article:
http://www.nytimes.com/2010/01/01/business/economy/01wall.html?bl
Showing posts with label mortgage rates. Show all posts
Showing posts with label mortgage rates. Show all posts
Saturday, January 2, 2010
Friday, January 9, 2009
Mortgage rates fall to all time low
January 8th article from CNNMoney.com:
NEW YORK (CNNMoney.com) -- Mortgage rates fell to another all-time low, declining for the tenth consecutive week. Government sponsored mortgage lender Freddie Mac said Thursday that fixed rates on 30-year mortgages averaged 5.01% for the week ending Jan. 8th. That's down from 5.10% last week and well below 5.87%, which is where the rate stood at this time last year. The 30-year fixed rate mortgage has not been lower since Freddie Mac started conducting the survey in 1971. Mortgage rates continue to respond to the Federal Reserve's decision to purchase mortgage backed securities from Fannie Mae (FNM, Fortune 500), Freddie Mac (FRE, Fortune 500) and Ginnie Mae, according to Frank Nothaft, Freddie Mac vice president and chief economist. "On November 25, 2008, the Federal Reserve announced that it planned to purchase up to $500 billion of these securities by the end of June this year. For the sake of comparison, there were roughly $4.7 trillion of such securities backed by home mortgages available as of September 30, 2008," Nothaft said in a release Thursday. The 15-year fixed rate mortgage this week averaged 4.62%, which is down from 4.83% last week. A year ago at this time, that rate averaged 5.43%. The 15-year rate has not been this low since June 13, 2003, when it averaged 4.6%. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.49% this week, down from last week when they averaged 5.57%. At this time a year ago, the 5-year ARM averaged 5.63%. And the one-year Treasury-indexed ARM averaged 4.95% this week, up from 4.85% last week. Last year, the 1-year ARM averaged 5.37%. "Since the end of October 2008, these rates have declined by almost 1 1/2 percentage points," said Nothaft. "[That's a] payment savings of about $184 a month for a $200,000 loan - an additional $11 from last week." First Published: January 8, 2009: 11:10 AM ET
NEW YORK (CNNMoney.com) -- Mortgage rates fell to another all-time low, declining for the tenth consecutive week. Government sponsored mortgage lender Freddie Mac said Thursday that fixed rates on 30-year mortgages averaged 5.01% for the week ending Jan. 8th. That's down from 5.10% last week and well below 5.87%, which is where the rate stood at this time last year. The 30-year fixed rate mortgage has not been lower since Freddie Mac started conducting the survey in 1971. Mortgage rates continue to respond to the Federal Reserve's decision to purchase mortgage backed securities from Fannie Mae (FNM, Fortune 500), Freddie Mac (FRE, Fortune 500) and Ginnie Mae, according to Frank Nothaft, Freddie Mac vice president and chief economist. "On November 25, 2008, the Federal Reserve announced that it planned to purchase up to $500 billion of these securities by the end of June this year. For the sake of comparison, there were roughly $4.7 trillion of such securities backed by home mortgages available as of September 30, 2008," Nothaft said in a release Thursday. The 15-year fixed rate mortgage this week averaged 4.62%, which is down from 4.83% last week. A year ago at this time, that rate averaged 5.43%. The 15-year rate has not been this low since June 13, 2003, when it averaged 4.6%. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.49% this week, down from last week when they averaged 5.57%. At this time a year ago, the 5-year ARM averaged 5.63%. And the one-year Treasury-indexed ARM averaged 4.95% this week, up from 4.85% last week. Last year, the 1-year ARM averaged 5.37%. "Since the end of October 2008, these rates have declined by almost 1 1/2 percentage points," said Nothaft. "[That's a] payment savings of about $184 a month for a $200,000 loan - an additional $11 from last week." First Published: January 8, 2009: 11:10 AM ET
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