By: Dennis Norman
Yesterday, Bankrate, Inc. issued their weekly mortgage interest rate report showing that mortgage rates after rising to almost 6% have retreated in this past week with 30-year fixed-rate mortgages averaging 5.76%, down from 5.95% last week, with an average of 0.43% in discount and origination fees.
The report shows 15-year fixed-rate mortgages were also lower this week at an average of 5.19%, down from 5.37% last week and the rate for a 5/1 ARM was at 5.37% down from 5.49% last week.
A year ago the average interest rate on a 30-year fixed-rate loan was 6.62%.
As I said previously, keep in mind is the Federal Reserve is still setting on over a trillion dollars in their mortgage buyback program and if they increase their buying of loans could help bring interest rates down. The Fed has their next Federal Open Market Committee meeting coming up next week and it my guess is if they are going to do anything it will be announced after that meeting.
By: Dennis Norman
Yesterday, Bankrate, Inc. issued their weekly mortgage interest rate report showing that mortgage rates after rising to almost 6% have retreated in this past week with 30-year fixed-rate mortgages averaging 5.76%, down from 5.95% last week, with an average of 0.43% in discount and origination fees.
The report shows 15-year fixed-rate mortgages were also lower this week at an average of 5.19%, down from 5.37% last week and the rate for a 5/1 ARM was at 5.37% down from 5.49% last week.
A year ago the average interest rate on a 30-year fixed-rate loan was 6.62%.
As I said previously, keep in mind is the Federal Reserve is still setting on over a trillion dollars in their mortgage buyback program and if they increase their buying of loans could help bring interest rates down. The Fed has their next Federal Open Market Committee meeting coming up next week and it my guess is if they are going to do anything it will be announced after that meeting.
By: Dennis Norman
Today, Bankrate, Inc. issued their weekly mortgage interest rate report showing that mortgage rates jumped this week with 30-year fixed-rate mortgages averaging 5.65%, up from 5.45% last week, with an average of 0.44% in discount and origination fees.
The report shows 15-year fixed-rate mortgages were also higher this week at an average of 5.06%, up from 4.86% last week and the rate for 30 year fixed-rate jumbo loans came in at 6.68%.
While rates are not at the lowest they have been recently they are still near historic lows. One year ago the average 30-year fixed-rate mortgage was at 6.52% so even with rates increasing the past two weeks they are still significantly lower than the recent past and at near-historic lows.
Something to keep in mind is the Federal Reserve is still setting on over a trillion dollars in their mortgage buyback program and if they increase their buying of loans could help bring interest rates down. The Fed has their next Federal Open Market Committee meeting in about 3 weeks and my guess is if they are going to do anything it will be announced after that meeting.
By: Dennis Norman
Today, Bankrate, Inc. issued their weekly mortgage interest rate report showing that mortgage rates jumped this week with 30-year fixed-rate mortgages averaging 5.65%, up from 5.45% last week, with an average of 0.44% in discount and origination fees.
The report shows 15-year fixed-rate mortgages were also higher this week at an average of 5.06%, up from 4.86% last week and the rate for 30 year fixed-rate jumbo loans came in at 6.68%.
While rates are not at the lowest they have been recently they are still near historic lows. One year ago the average 30-year fixed-rate mortgage was at 6.52% so even with rates increasing the past two weeks they are still significantly lower than the recent past and at near-historic lows.
Something to keep in mind is the Federal Reserve is still setting on over a trillion dollars in their mortgage buyback program and if they increase their buying of loans could help bring interest rates down. The Fed has their next Federal Open Market Committee meeting in about 3 weeks and my guess is if they are going to do anything it will be announced after that meeting.
By: Dennis Norman
Today, as expected, the Board of Governors of the Federal Reserve System slashed the discount rate (the interest rate the Federal Reserve charges on loans to commercial banks) from 1.25% to 1/2%. This action will lower the prime rate charged by most banks to around 3.25% which will be the lowest prime rate has been since the mid 1950′s. In the 50+ years since prime rate was last this low it his 10% in 1973 rose to 12% by 1974, 15.75% in late 1979 (when I got into the real estate business) then topped out at a whopping 20.50% in early 1981 and spent most of the year at that rate.
A press release issued today by the Fed said that “financial markets remain quite strained and credit Read more…
By: Dennis Norman
Today, as expected, the Board of Governors of the Federal Reserve System slashed the discount rate (the interest rate the Federal Reserve charges on loans to commercial banks) from 1.25% to 1/2%. This action will lower the prime rate charged by most banks to around 3.25% which will be the lowest prime rate has been since the mid 1950′s. In the 50+ years since prime rate was last this low it his 10% in 1973 rose to 12% by 1974, 15.75% in late 1979 (when I got into the real estate business) then topped out at a whopping 20.50% in early 1981 and spent most of the year at that rate.
This is good news for real estate investors… Read more…
