Monday, 19 September 2011

Fixed mortgage rates touching new lows for 2011

Fixed mortgage rates touching new lows for 2011 
NEW YORK - Fixed mortgage rates fell this week to the lowest part of the year, offering incentives for homeowners to save money by refinancing their loans.

Freddie Mac said Thursday that the average rate on 30-year loan fell to 4.61 percent. That's down from 4.63 percent and the lowest level since mid-December.

The average of the 15-year fixed mortgage, a popular option for refinancing, fell to 3.80 percent from 3.82 percent. That marked the lowest point since late November.

Tracking rates yield on the 10-year Treasury, which fell to the lowest level of the year this week.

The low rates have not been enough to boost the housing market. Fewer people bought existing homes in April, the National Association of Realtors said Thursday. Sales fell to
a seasonally adjusted annual rate of 5.05 million units, well below the 6 million households in a year that economists consider a healthy market.

However, the number of borrowers looking to refinance is now at the highest level since the second week of December, according to the Mortgage Bankers Association. Refinancing activity has increased 33 percent in the last five weeks, reflecting the continuing decline in rates.

Despite the gains, refinancing is only half the level it reached in the autumn of last year, when mortgage rates fell to record lows. The loan rate 30 year mortgage fell to a minimum of four decades of 4.17 percent in November. The rate of 15-year mortgage reached 3.57 percent in that same month, the lowest level on record dating back to 1991.

"We are seeing a boom (refinancing) by any means," said Guan leyrer, president of Heritage National Mortgage in Michigan.

She said many borrowers to refinance when rates were lower last year. Others do not have enough equity in their homes because values ​​have dropped too much or your credit is not polished enough for them to qualify.

And those who can shave a percentage point or more since the closure of its mortgage rate face higher costs this year due to a recent increase in fees for assessments, title insurance and other costs. That could offset the savings from a reduction in the rate of interest.

"If it's purely a decision on rates, the difference has to be one and a half percentage point," said Ritch worker, co-owner of the mortgage worker in Melbourne, Florida

Workers had noticed an increase in mortgage applications to buy. Prospective buyers are taking advantage of the combination of low rates and declining home prices.

To calculate the average mortgage, Freddie Mac collects fees from lenders around the country Monday through Wednesday each week. Rates fluctuate considerably, even within a single day.

The average rate on a five-year adjustable-rate mortgage rose to 3.48 percent from 3.41 percent. The five-year adjustable rate loan hit 3. 25 percent last month, the lowest rate on record dating back to January 2005.

The average one-year adjustable-rate loans also rose to 3.15 percent from 3.11 percent, the lowest rate in the last year.

Rates do not include additional fees, known as points. One point equals 1 percent of the total loan amount. The average rate for 30-year fixed loan and 15 year fixed loan at the Freddie Mac survey was 0.7 points. The average of the five-year ARM and the 1-year ARM was 0.6 points.

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