Posted on 12/11/2006 10:28:57 PM PST by snowsislander
WASHINGTON (AP) - Mortgage rates around the country fell this week, with rates on 30-year mortgages dipping to the second lowest level of the year, pushed down by further signs of economic weakness.
Mortgage giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.11 percent, down from 6.14 percent last week. It marked the fourth straight weekly decline in rates.
The only time rates have been lower this year was the week of Jan. 19 when the 30-year mortgage dipped to 6.10 percent.
All categories of mortgage rates surveyed by Freddie Mac declined this week.
Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing, averaged 5.84 percent, down from 5.87 percent last week.
For one-year adjustable rate mortgages, rates fell to 5.43 percent, down from 5.46 percent last week.
Five-year adjustable rate mortgages dropped to 5.92 percent, compared to 5.95 percent last week.
I have a relative who closes on a condo in San Marcus, CA later this month. He sold his home in Houston, TX six months ago. There is movement out there. It is just not nearly as brisk as it once was.
Best wishes on their move.
Only in certain markets.
The problem isn't higher interest rates keeping buyers out. Its that given the massive gains due to historic low interest rates for a long period of time, more and more people have been completely priced out of the market. The fed simply kept interest rates too low, for too long. Now we are seeing the results of this.
It doesn't matter if interest rates go lower at this point. I don't see it massively spuring people to buy. Many of those that are buying are only able to with sub-prime, arm, and exotic loans because its the only way they can get a loan for these properties. Its been that way for awhile.
The major markets are in a state of massive overvaluation v.s. wage scale\economics of its cities.
What your now getting is more and more cities that have simply become investment plays of the wealthy, like Manhattan where more and more local people can't afford to buy anything, so many of the homes are just investment properties of worldwide buyers with nobody living in them for extended periods of time. Drive around many of the neighborhoods of SF and you see the same thing. You rarely see anyone around. The houses sit empty with nobody living in them.
I refied before the drop a couple years ago and got a 30 year fixed at 5.75%. So far, all of the companies that hound me to refinance again just walk away because they can't match that.
I'll just keep it.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus
Nice .... Texas Veterans' rates are dropping again .... .8 to go :)
That's only a small part of it. The Fed did set rates low, but that was to counter the rates that were too high in 1999/2000 that caused the stock market crash. Liquidity was also needed after the 9/11 attacks, and W's bumbling economic speeches and policies his first two years in office. The real estate bubble was also a global phenomenon beyond the reach of the Fed.
A lot of it was a move to safe haven investments after the stock market collapse, terrorist attacks, and all the currency problems of the 1990's. The capital gains exclusion on home sales passed in 1997 was another factor in the United States. Real estate was also due for some gains after many years of underperformance.
Yep. Here in Florida our insurance rates have doubled each year for the past three years. If that trend keeps up it won't matter what your mortgage principle or rate is, you aint' gonna live here much longer.
And heaven help you with taxes if you do buy. And if you buy and don't get Home Owner's exemption? Yikes...
:> Ya think!?? Repos are out there and will look at one that we can write a check for that once sold for $117,000 18 mos ago
Even low interest rates can't counter the absurdly high prices of wood, copper and other material to build homes. Existing homes are priced way too high. Rates would have to drop to about 5% to get any real movement.
"I refied before the drop a couple years ago and got a 30 year fixed at 5.75%."
I bought at 5.375%. :D
We're going to have to move for the fiancee units grad school in a couple years. Not looking forward to it!
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