Archive for May, 2010
Saw Tooth or Zig Zag Recovery ? ?
Related Posts: Credit & Finance, Real Estate News, Real Estate Sales
hiSome housing experts now predict what one calls a “saw-tooth bottom” to the housing market, driven by a shadow inventory that could include up to 4.5 million properties. This shadow inventory is more than just bank-owned homes not yet on the market. It also includes sellers who would like to sell but, fearing they can’t, are waiting for signs of a market bottom before putting their homes on the market. Some say this rush to sell will add inventory to the market and at least temporarily drive prices back down – hence, the “saw-tooth” description. Years ago this was desribed as a “zig-zag” trend that if you average the past 6 months on a curve it will be as it really is…..slow but steady recovery.
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Mortgage Rates fell to the lowest this year !
Related Posts: Credit & Finance, Government, Real Estate News
hiMortgage rates fell this week to the lowest level of the year, as rates fell on U.S. government securities. Fixed mortgage rates closely track interest rates paid on long-term Treasury bonds. The average rate on a 30-year fixed rate mortgage dipped to 4.93 percent this week from 5 percent a week earlier. It was the lowest level since mid-December, when rates averaged 4.81 percent.
The drop came as investors shifted money from risky European debt to safer U.S. securities. Bond yields fell as a result, and that lowered mortgage rates. Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.
The average fixed rate dropped to a record low of 4.71 percent late last year, pushed down by a campaign by the Federal Reserve to reduce borrowing costs for consumers. The program ended this spring, but rates have remained low, especially after fears that Greece’s government would default shook world markets.
The last time rates for 30-year fixed mortgages averaged less than 5 percent was the week of March 25, when they were 4.99 percent.
This week, the average rate on a 15-year fixed-rate mortgage was 4.30 percent, down from 4.36 percent last week.
Rates on five-year, adjustable-rate mortgages averaged 3.95 percent, down from 3.97 percent a week earlier. Rates on one-year, adjustable-rate mortgages fell to 4.02 percent from 4.07 percent.
The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount.
The nationwide fee for loans in Freddie Mac’s survey averaged 0.7 of a point for 30-year loans 0.6 of a point for 15 year, 5-year and 1-year loans.
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