Thursday, February 03 2011
Interest rates on home loans may drop further thanks to recent speculation that the Federal Reserve Board will inject about $600 billion into the consumer credit industry, according to a report in the Washington Post. Fed Chairman Ben Bernanke recently said this move could create mortgage rates that "will make housing more affordable and allow more homeowners to refinance."
However, other financial experts are careful to point out that this decline may not be as steep as some might expect, the report said. Amy Crews Cutts, deputy chief economist at Freddie Mac, said rates shouldn't be affected by the cash injection too greatly, noting, "Four and an eighth is far more likely than 4 percent."
The reason for this, Cutts told the newspaper, is that the Fed would be purchasing Treasury bonds rather than mortgage-backed securities. However, another dip in home loan rates would likely spur even greater levels of refinance, which already make up about 80 percent of the mortgage market.
Meanwhile, the low mortgage rates haven't helped to boost sales of existing homes. In fact, the most recent statistics from the National Association of Realtors showed that this type of purchase declined more than 25 percent in the third quarter.
Sunday, August 08 2010
Freddie Mac reports that long-term mortgage rates moved south again this week.
Interest on 30-year fixed loans hit a new low of 4.49 percent, compared to 4.54 percent last week and 5.22 percent a year ago; and the 15-year mortgage landed at 3.95 percent, down from 4 percent last week and 4.63 percent a year ago.
Five-year adjustable-rate mortgages reached a new low of 3.63 percent, down from 3.76 percent last week and 4.73 percent a year ago; while one-year ARMs fell to 3.55 percent from 3.64 percent last week and 4.78 percent a year ago.
Friday, January 15 2010
Mortgage application volume increased 14.3 percent last week compared to the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association.
On an unadjusted basis applications rose 66 percent. The increase reflects a shortened week due to the New Year’s holiday.
Most of the increase was in refinances, which rose 73.9 percent from the previous week’s unadjusted index. The unadjusted purchase index rose 48.8 percent compared to the previous week and was down 24.9 percent compared to the same week a year ago.
Interest rates slipped:
Source: Mortgage Bankers Association (01/13/2010) http://www.realtor.org/RMODaily.nsf/pages/News2010011302?OpenDocument
Thursday, September 03 2009
According to published reports, the Internal Revenue Service is more closely examining how taxpayers are reporting mortgage interest deductions.