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20 Jul 09 Current Mortgage Rates

Current mortgage interest rates are up this past week brought on by higher Treasury rates, 10-year U.S. Treasury rates rose from about 3.30 % to 3.65 % this week. Today’s mortgage interest rates remain historically low.  The low rates home mortgages are slowly starting to resurrect the home purchase market.  Home-buyers are being lured back to the housing market slowly, but surly with the Federal Reserve looking to end the nationwide housing crisis. Low rate mortgage loans are also igniting home refinancing activity. Last week, the Mortgage Bankers Association reported that the Refinance Index rose 17.7% from the previous week on a seasonally adjusted basis.

Another index released this past week further supports the fading of housing and subprime mortgage crisis. The National Association of Realtors released their Pending Home Sales Index which showed a slight increase in May 2009. The increase was only 0.1% but it was the fourth consecutive monthly increase which hasn’t happened since October 2004.  Mortgage Related News continues to refer visitors to mortgage brokers and lenders offering free mortgage rate tables based on your state and neighborhood lending postings.

Adjustable Mortgage Rates
Adjustable mortgage rates were mixed this week. The average rate for a one-year conforming ARM decreased to 4.51 % from 4.55 % the prior week. Jumbo one-year ARMs increased to 5.24%, up from the prior week’s average rate of 5.20 %.

Three-year ARM mortgage rates (conforming) decreased to 4.64% this week, down from last week’s average rate of 4.66%. The average mortgage loan rate for a jumbo three-year ARM is at 5.32%, up from the prior week’s average home mortgage loan rate of 5.30%.

Five-year Adjustable Rate Home Loans (conforming) were all over the map this week from several lending sources like Freddie Mac, MBA, Bank Rate and Bloomberg. Five-year ARMs are averaging 4.53%, down from last week’s rate of 4.57%. The average (jumbo) 5-year mortgage rate rose to 5.42% from the previous week’s average rate of 5.34%.

The average interest rate on a seven-year adjustable rate mortgages rose. Conforming seven-year ARMs are averaging 5.14 %, up from 5.00% the prior week. Jumbo seven-year adjustable mortgage rates increased to 5.95, up from last week’s rate of 5.90%.

10-year adjustable rate home mortgages were mixed. Conforming 10-year ARMs are at 5.47 % this week, up from the prior week’s average mortgage rate of 5.30%. Jumbo 10-year ARMs averaged 6.26%, down slightly from 6.28%.

Smart Home Equity reported interest rates for home equity loans and home equity lines of credit remain unchanged.  Slight increases and decreases were reported from Lenders offering HELOC’s and fixed rate equity mortgages.

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31 Dec 08 Mortgage Rates Decline to Lowest Level

According to Freddie Mac chief economist Frank Nothaft, “Interest rates for 30-year fixed-rate mortgages fell for the ninth straight week and represented a third consecutive all-time record low since Freddie Mac’s survey began in April 1971.”  FHA rates declined to 5.25% this week and many believe will promote new opportunities in 2009 for first time homebuyers.  Second mortgage rates declined for fixed equity loans and home equity lines of credit.  Home mortgage rates have dropped dramatically ever since the Federal Reserve unveiled a plan last month to buy up to $500 billion of mortgage securities backed by government-sponsored enterprises, Fannie Mae, Freddie Mac, and Ginnie Mae. The program also entails buying up to $100 billion of debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks.

Interest rates on U.S. thirty-year mortgage loans with fixed interest rates dropped for a ninth consecutive week, reaching their lowest level in 37 years, according to a survey released on Wednesday by home funding company Freddie Mac.  Mortgage rates for 30-year fixed-rate mortgage dropped to an average of 5.10 percent for the week ending Wednesday, down from the previous week’s 5.14 percent, Freddie Mac said.  The 30-year fixed-rate mortgage has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.

Many industry insiders believe that mortgage interest rates will decline to even lower levels in 2009.   Internet advertising firm, KMG president, Jason Cardiff said in a statement yesterday, “Rates for home mortgages will decline to unimaginable levels in 2009, because the American people need an incentive to start taking risks again in buying real estate.”  Cardiff continued, “the banks need to trust restored as well and the only motivating reason for consumers to start borrowing again will be low mortgage rates.”  Cardiff pointed out that low rate mortgage loans for targeted groups are not enough. “The banks need to expand their lending guidelines so that not only people with high credit scores have the opportunity to refinance into a mortgage they can afford.”

The Federal Reserve continued their aggressive actions with an effort to drive down home loan costs, setting a goal of buying $500 billion in mortgage-backed securities by mid-2009.  The struggling housing market is essential to the U.S. economy.  Many economists believe improving the housing market with low rate incentives will stimulate a recovery for the world’s largest economy, which admitted to being in a recession since last year.  The housing market is in the worst downturn since the Great Depression as a huge supply of unsold homes, tighter mortgage lending guidelines and record foreclosures push down home prices.

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