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13 Feb 14 Low Mortgage Rates Stablizing

In a recent article, Freddie Mac chief economist, Frank Nothaft said, “Low mortgage rates are helping to stabilize home sales.” “New home sales in August rose to the highest annualized pace since September 2008 and the inventory of unsold houses fell to the lowest level since February 1983.”

The 30-year fixed-rate mortgage averaged 4.94% for the week ending Oct. 1, down from 5.04% last week and 6.10% a year ago. The mortgage hasn’t been below 5% since the week ending May 28, when it averaged 4.91%.

The 15-year fixed-rate mortgage averaged 4.36% this week, down from last week’s 4.46% average. The home loans averaged 5.78% a year ago. It hasn’t been lower since Freddie Mac started tracking it in 1991.

To obtain these low mortgage rates, the 30-year fixed-rate mortgages require a payment with a cost of 0.7 point, the 15-year fixed-rate mortgage and the 5-year ARM required an average 0.6 point and the 1-year ARM required an average 0.5 point. A point is 1% of the mortgage amount, charged as prepaid interest.

Bad credit mortgage rates may be possible with the obama loan relief or the new FHA loan modification that enables borrowers with delinquent loan payments refinance their home if there is a documented hardship.

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