Posted on 06/24/2010 12:54:37 PM PDT by SeekAndFind
Long-term mortgage rates fell to the lowest levels since Freddie Mac began keeping track this week.
Freddie Mac’s (NYSE: FRE) weekly rate report says a 30-year fixed-rate mortgage averaged 4.69 percent in the week ending June 24, down from 4.75 percent last week. A year ago, 30-year mortgages averaged 5.42 percent.
The average rate on a 15-year fixed rate mortgage fell to 4.13 percent this week, the lowest in at least two decades.
A one-year adjustable-rate mortgage averaged 3.77 percent, down from 3.82 percent last week.
While low mortgage rates remain a stimulus for housing sales, the loss of the home-buyer tax credit is expected to slow sales in the months ahead. Earlier this week, the National Association of Realtors reported that existing home sales in May fell 2.2 percent from April, though existing home sales were still up more than 19 percent from a year earlier.
The sales picture was brighter in the Triad. For example, May home sales in Greensboro were up 32 percent, while sales in High Point increased 28 percent.
See also here in the Wall Street Journal:
http://online.wsj.com/article/SB10001424052748704911704575326902537640926.html
Mortgage rates fell slightly the past week, with three of the four rates Freddie Mac tracks—including the 30-year fixed-rate—falling to record lows, according to Freddie’s weekly survey of mortgage rates.
The rates on all but one-year adjustable-rate mortgages hit the lowest point since Freddie began tracking them—1971 for the 30-year loans, 1991 for 15-year fixed and 2005 for 5-year adjustables. The one-year set yet another 6-year low in the latest week.
The declines come amid a continued rally in the Treasurys market, which pushes the debt’s yields down. Mortgage rates generally track yields.
The 30-year fixed-rate mortgage averaged 4.69% for the week ended Thursday, down from the prior week’s 4.75% average and 5.42% a year ago. Rates on 15-year fixed dropped to 4.13% from 4.2% and 4.87%, respectively.
Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 3.84%, lower than the week earlier’s 3.89% and 4.99% a year ago. One-year Treasury-indexed ARMs were 3.77%, down from 3.82% and 4.93%, respectively.
To obtain the rates, the 15-year fixed-rate mortgages required payment of an average 0.6 point and the others required an average 0.7 point. A point is 1% of the mortgage amount, charged as prepaid interest.
Yeah, but just try to get approved if you can’t check one of the “special skin color” checkboxes.
Hmmm. I have a 6.79% 30 year fixed rate, been paying for 8 years.............Maybe a refi is in order...............
Post haste.
DUDE! Hell yeah, and RIGHT NOW!!
This is what I do for a living, yes rates are awesome. Much lower than I thought I would see.
We are very busy again after a lull when the tax credit business went away.
Contrary to what some people think; it’s not that hard to get approved normally.
If someone has a home that has dropped in value by 50%; that’s another story.
But even places where values have dropped moderately; we can use what is called HARP (a FNMA FHLMC product) to refinance existing loans at up to 125% loan to value.
Alright time to get back to work!
I’ve got a 5.75% fixed rate for 30 yrs. would it be pratical to re-fi?
I think so. Checking options wouldn’t hurt either way.
You should at least check out the terms and cash flow on it. My rule of thumb for most people is “when the difference gets to 2 points and you’ve been paying less than 40% of the length of the loan...”
With the limitations of rolling in closing costs, the MI (Mortgage Insurance) restrictions, and HVCC (Thank You Cuomo!), I don't think these types of HARP products are much more than window dressing in most areas of the Country.
But, I'm glad to hear your busy as most areas of the Country have seen a big drop in both purchase and refinance loan applications.
” My rule of thumb for most people is “when the difference gets to 2 points and you’ve been paying less than 40% of the length of the loan...” “
Any chance of you finishing your sentence?
That’s what I’ve been thinking...............
When those conditions are met, then check out the terms of a re-fi.
In these banking conditions, however, I strongly, strongly advise people to READ THE FINE PRINT. I mean REALLY read it.
Mine is 4.5% from 6 ago,, put around 30% down,, house note is way less than rent for a one bed apartment, and sending in $500/ towards the principle,,, won’t be long.
Low rates aren’t helping new home sales. Sales have even plummeted in Houston. Very concerned.
Look for no cost re-fi, if not from your lender than someone else . You will pay a higher rate, but could still be a lot less .
Flattening curve. Bad sign.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.