Estate and mortgage
Lower Housing Prices, Personal Spending, and Income Help to Lower Mortgage Rates
The 15-year FRM this week averaged 5.65 percent with an average 0.5 point, down from last week when it averaged 5.73 percent. A year ago at this time, the 15-year FRM averaged 5.84 percent. The 15-year FRM has not been lower since the week ending October 13, 2005, when it averaged 5.62 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.75 percent this week, with an average 0.5 point, down from last week when it averaged 5.86 percent. A year ago, the 5-year ARM averaged 5.92 percent. The 5-year ARM has not been lower since the week ending October 27, 2005 when it averaged 5.63 percent. One-year Treasury-indexed ARMs averaged 5.46 percent this week with an average 0.6 point, up from last week when it was 5.43 percent. At this time last year, the 1-year ARM averaged 5.43 percent. "House prices rose only 1.8 percent over the 12-months ending September 30th, the slowest rate of growth since the 12-month period ending March 31, 1995, according to the Federal Housing Finance Board"s national house-price index," said Frank Nothaft, Freddie Mac vice president and chief economist. "With lower consumer spending and personal income gains in October, interest rates on U.S. Treasury securities fell lower this week and mortgage rates followed." "In addition, U.S. nonfarm productivity jumped by an annual rate of 6.3 percent in the third quarter, the most since 2003, while labor costs fell 2.0 percent. Greater efficiencies and lower costs ease pressures for companies to raise prices and offer the Federal Reserve (Fed) more leeway to reduce short-term rates. Currently, the federal funds futures market has almost a 100 percent probability that the Fed will lower rates in its December 11th policy committee meeting. These combined factors will likely diminish upward pressures on mortgage rates over the next few months."sameday loans commented:
I am also hoping the same as these combined factors will likely diminish upward pressures on mortgage rates over the next few months. You have shareda good information. Thanks for such post.
22.10.2011
Wonga commented:
These three factors are really contributing in lowering the mortgage rates and making the deal more favourable for customers.
09.01.2012