Mortgage Rates Remain Near Historic Lows

Average U.S. rates on fixed mortgages changed little and remained above record lows reached earlier this year.

The low rates have assisted in a modest housing recovery.

According to mortgage buyer Freddie Mac, the rate on the 30-year loan decreased to 3.55 percent, down from 3.59 percent last week.

Six weeks ago, the rate dropped to 3.49 percent, which is the lowest since long-term mortgages began in the 1950s.

The average on the 15-year fixed mortgage was unchanged at 2.86 percent.

That’s above the record low of 2.80 percent reached six weeks ago.

This year, cheap mortgages have lifted home sales.

Sales of newly built and previously occupied homes are above last year’s levels.

Prices have increased, largely because the supply of homes has decreased while sales have risen.

Also, builder confidence is at its highest level in five years.

Source: nbcnews.com

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Wells Fargo’s Confidence in Housing Directed to Lending

At a time when several builders still state that they’re having trouble getting financing for their projects, Wells Fargo & Company is stating that the housing sector is recovering at a sufficient-enough pace to support a dedicated home builder banking group that this national banker has created to serve residential developers and builders on the East Coast, in Texas, and in the Midwest.

Bird Anderson, a 25-year industry veteran who has been with Charlotte, North Carolina–based Wells Fargo and its legacy Wachovia organization since 1985, heads up this new group, which comprises 14 bankers located in Washington, D.C., the Carolinas, Florida, and Texas.

The creation of this Homebuilder Banking Group comes after PNC Bank’s announcement last month that it will stop providing construction loans to builders.

For months, PNC has been winding down this business, which it gained from acquiring RBC Bank.

PNC’s exit was more evidence that some banks have been decreasing their exposure to the housing market, either by becoming more strict on their credit requirements or leaving that business.

Builders and developers in the western U.S. are scheduled to continue to be served by Wells Fargo’s local coverage teams.

Source: builderonline.com

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U.S. Rate on 30-Year Mortgage Reaches New Record of 3.49 Pct.

The average rate on the 30-year fixed mortgage dropped again, this time dropping under 3.50 percent for the first time on records dating back 60 years.

According to mortgage buyer Freddie Mac, the rate on the 30-year loan decreased to 3.49 percent.

That’s down from 3.53 percent last week and the lowest since long-term mortgages started in the 1950s.

The average rate on the 15-year fixed mortgage slipped to 2.80 percent.

That’s below last week’s previous record of 2.83 percent.

The rate on the 30-year loan has dropped to or matched record-low levels in 13 of the past 14 weeks.

In order to calculate average rates, Freddie Mac surveys lenders across the U.S. on Monday through Wednesday of each week.

The average fee for 30-year loans was 0.7 point, unchanged from last week.

The fee for 15-year loans jumped to 0.7 point from 0.6 the previous week.

The average rate on one-year adjustable rate mortgages increased to 2.71 percent from 2.69 percent.

The fee for one-year adjustable rate loans jumped to 0.5 point from 0.4 point.

The average rate on five-year adjustable rate mortgages rose to 2.74 percent from 2.69 percent last week.

The fee remained unchanged at 0.6 point.

Source: yahoo.com

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30-Year Fixed Mortgage Rate Ties Record Low at 3.48%

Currently, the 30-year fixed mortgage rate on Zillow Mortgage Marketplace is 3.48 percent, unchanged from the same time last week.

Reported for the first time last week, this represents the lowest rate reported since Zillow Mortgage Marketplace began in April 2008.

The 30-year fixed mortgage rate hovered between 3.49 and 3.54 percent for the majority of the week, dropping to the current rate.

Erin Lantz, director of Zillow Mortgage Marketplace, stated, "Mortgage rates rose late last week on the heels of the Federal Reserve announcement saying that, in an effort to keep interest rates low, they plan to extend Operation Twist through 2012 rather than the more aggressive option of increasing the purchase of mortgage-backed securities."

Currently, the rate for a 15-year fixed home loan is 2.88 percent, while the rate for a 5-1 adjustable-rate mortgage is 2.46 percent.

Source: yahoo.com

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30-Year Fixed Mortgage Rate Ties Record Low at 3.48%

Currently, the 30-year fixed mortgage rate on Zillow Mortgage Marketplace is 3.48 percent, unchanged from the same time last week.

Reported for the first time last week, this represents the lowest rate reported since Zillow Mortgage Marketplace began in April 2008.

The 30-year fixed mortgage rate remained between 3.49 and 3.54 percent for the majority of the week, decreasing to the current rate this morning.

Erin Lantz, director of Zillow Mortgage Marketplace, stated, "Mortgage rates rose late last week on the heels of the Federal Reserve announcement saying that, in an effort to keep interest rates low, they plan to extend Operation Twist through 2012 rather than the more aggressive option of increasing the purchase of mortgage-backed securities. That option would have had the biggest impact in terms of keeping rates low. However, the slight increase in rates was short-lived, as rates are now back down below the 3.5 percent threshold they crossed for the first time last week. Looking to next week, news from the European Summit has the most potential to move markets, but unless the Summit produces unexpectedly immediate solutions, rates are unlikely to move much given the long-term nature of the European economic challenges."

Currently, the rate for a 15-year fixed home loan is 2.88 percent, while the rate for a 5-1 adjustable-rate mortgage is 2.46 percent.

Source: yahoo.com

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Builder Confidence at Five-Year High

Builder confidence increased in June to reach the highest level seen since May 2007, according to the National Association of Home Builders/Wells Fargo Housing Market Index.

The index grew one point for the month for a reading of 29, a 123% improvement year-over-year.

Barry Rutenberg, the NAHB’s chairman, stated, "This month’s modest uptick in builder confidence comes on the heels of a four-point gain in May and is reflective of the continued, gradual improvement we are seeing in many housing markets."

The index’s improvement came from the component measuring current sales conditions, which gained two points to a reading of 32.

The gain is the highest seen since April 2007.

The components tracking sales expectations for the upcoming six months and prospective-buyer traffic were both unchanged at 34 and 23, respectively.

David Goldberg, vice president of investments at UBS, stated, "Readings on traffic remain well below the historical average. Further, even as traffic levels improve, we expect mortgage liquidity constraints to persist, limiting the pace of a rebound relative to historical trends."

Source: builderonline.com

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Mortgage Rates Still Decreasing

Rates for a 30-year fixed-rate mortgage averaged 3.67 percent, which is down from last week’s average of 3.75 percent.

At this time last year, rates averaged 4.49 percent.

The 15-year fixed-rate mortgage averaged 2.94 percent this week, down slightly from last week’s average of 2.97 percent.

One year ago, the 15-year fixed-rate mortgage average was 3.68 percent.

The average for a 5-year Treasury-indexed hybrid adjustable-rate mortgage was 2.84 percent, unchanged from last week.

At this time last year, the 5-year adjustable-rate mortgage averaged 3.28 percent.

A 1-year Treasury-indexed adjustable-rate mortgage averaged 2.79 percent this week, up from last week’s average of 2.75 percent.

One year ago, the average for a 1-year adjustable-rate mortgage was 2.95 percent.

Source: cbsnews.com

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Record Low Rates Push Mortgage Activity Grows

According to the Mortgage Bankers Association, U.S. mortgage activity grew 9.2 percent in the week ended Friday with interest rates reaching record lows.

The trade group’s Refinancing Index increased significantly as well, up 13 percent, the Mortgage Bankers Association stated.

Interest rates for 30-year, fixed-rate conforming mortgages decreased from 4.01 percent to 3.96 percent with average points dropping from 0.41 to 0.37.

That is the lowest rate in the history of the survey, the Mortgage Bankers Association said.

Also slipping to a record low, rates for 15-year, fixed-rate contracts dropped from 3.29 percent to 3.26 percent, setting a record for the third straight week.

Points for 15-year loans dropped from 0.32 to 0.41.

Source: builderonline.com

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Houston Market Lifts Home Values

Houston, Tx housing prices are scheduled to increase this year amid a strong local economy and a limited supply, economist Ted C. Jones stated.

Apartment rents may increase as much as 10 percent, which is can encourage more people to become homeowners.

The median price of a house is scheduled to jump an estimated 3 percent, Jones, chief economist for Stewart Title Guaranty Co., stated.

Other recent reports on Houston-area real estate seem to support such optimism.

In the first quarter, home sales rose 9 percent over the same period last year to 12,936, according to the Texas Quarterly Housing Report.

The median price reached $150,900, which is a 4 percent increase.

Also, employment gains are set to increase commercial real estate, where construction has decreased.

Rents are scheduled to rise for industrial and office properties as occupancy rates tighten, Jones added.

Source: builderonline.com

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30-Year Mortgage Rate Drops to 3.88 Pct.

The average rate on the 30-year fixed mortgage has dropped to near its record low, keeping home-purchasing and refinancing affordable.

The rate on the 30-year loan dropped to 3.88 percent this week, which is down from 3.9 percent.

In February, the rate reached 3.87 percent, which is the lowest since long-term mortgages started in the 1950s, according to Mortgage buyer Freddie Mac.

For home buyers, the 30-year loan is the most common financing option.

The average on the 15-year fixed-rate mortgage slipped to 3.12 percent, which is down from 3.13 percent last week.

The U.S. average hit an all-time low of 3.11 percent two weeks ago.

In order to calculate the average rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week.

The average rate does not include extra points, also known as fees, which the majority borrowers must pay to get the lowest rates.

1 percent of the loan amount equals one point.

For the five-year adjustable loan, the average rate increased to 2.85 percent, which is up from 2.78 percent.

The average on one-year adjustable loans dipped to 2.74 percent, which is down from 2.81 percent.

Source: msn.com

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