Refinance Mortgage Rates [mortgage-answer.blogspot.com]
www.millionairecorner.com Mortgage rates set a new record low for the fourth consecMorutive week, after falling for seven out of the past eight weeks, according to a weekly national survey released yesterday by Bankrate.com. The average rate for a 30-year, fixed-rate mortgage was 3.97 percent, while the average 15-year fixed-rate mortgage held at 3.2 percent and the average rate for a jumbo 30-year fixed mortgage sank to a record low of 4.52 percent, according to the Bankrate survey, compiled from data provided by the top 10 banks and thrifts in the top 10 markets. Prospective borrowers are benefitting from another "flight to quality" inspired by the European debt crisis, said Bankate. The economic uncertainty in Europe increases the appeal of safe-haven products, such as US Treasuries, and the increased demand for Treasuries drives down yields. Closely related, mortgage rates follow yields. "As long as uncertainty pre vails, mortgage rates are likely to remain at these ultra-low levels," Bankrate said in a statement. Mortgage rates have not exceeded 6 percent since November of 2008, according to Bankrate, when 30-year, fixed-rate mortgages averaged 6.33 percent. The current ultra-low rates are contributing to record high housing affordability, according to the National Association of Realtors, which reports a "new milestone" for the housing market. The association's Housing Affordability Index rose to a new peak of more than 205 in the first quarter of 2012 -- the first ...
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Mortgage Refinance
Mortgage Rates Rise
Mortgage rates on fixed mortgages have ticked up for the fifth straight week, reflecting higher yields on long-term Treasurys, according to insiders. Freddie Mac, the king of mortgages, said that the the average rate on a 30-year fixed mortgage rose to 4.83 percent from 4.61 percent in the preceding week. Last month (November), the mortgage rate reached a 40-year low of 4.17 percent.
The average rate on the 15-year loan also ever so slight increased to 4.17 percent from 3.96 percent. It reached 3.57 percent in November (last month), the lowest level on records dating back all the way to 1991, if you can believe that. Mortgage rates are on the rise after falling for seven straight months. Investors are slowing moving money out of Treasurys and into stocks, according to insiders.
That's based largely on the speculation and expectation that the tax-cut plan that Congress is apparently all but ready to bless will spur growth and potentially higher inflation. Other fear the bill might actully "spurn" growth, rather than spur growth.Sigh.
What are yields and how to yield work? In essence, these so-called yields tend to rise on fears of higher inflation. Mortgage rates track the yields on what's known as the 10-year Treasury note. The sell-off and run in the 10-year Treasury note is complicating the Federal Reserve's efforts to lower interest rates by buying up $ 600 billion in Treasurys. Truth is, there is nothing "Federal" about the Federal Reserve at all.
Yet some traders had hoped the central bank would boost the scope of its purchases to keep interest rates down.The increase in mortgage rates already is sending chills through the housing market. Refinance activity apparently fell last week for the fifth straight week, while the number of people applying for a mortgage to purchase a home dropped 5 percent from the week before. This again, according to insiders with knowledge. Yet how are mortgage rates calculated today? To calculate average mortgage rates, Freddie Mac collects rates from mortgage lenders across the country on Monday through Wednesday of each and every week. These mortgage rates often fluctuate significantly, even within a single day.
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