Friday, September 20, 2013

Mortgage Rates Move Lower as Fed Delays Taper

Mortgage rates inched lower this week, following the Federal Reserve’s recent announcement that it would delay tapering its bond buying program. Mortgage rates have climbed more than one percentage point since May when speculation began that the Fed would start winding down its $85 billion per month bond buying program, which had helped keep mortgage rates low.
"Mortgage rates drifted downwards this week amid signs of a weakening economic recovery,” says Frank Nothaft, Freddie Mac’s chief economist. "This, in part, was why the Federal Reserve chose to maintain its MBS and bond-buying program. [The Fed] also cited the tightening of financial conditions observed in recent months, which in the case of the housing market means the rise in mortgage rates since May."
Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 19:
  • 30-year fixed-rate mortgages: averaged 4.50 percent, with an average 0.7 point, dropping from last week’s 4.57 percent average. Last year at this time, 30-year fixed-rate mortgage averaged 3.49 percent. 
  • 15-year fixed-rate mortgages: averaged 3.54 percent, with an average 0.7 point, dropping from last week’s 3.59 percent average. Last year at this time, 15-year rates averaged 2.77 percent. 
  • 5-year adjustable-rate mortgages: averaged 3.11 percent, with an average 0.5 point, dropping from last week’s 3.22 percent average. A year ago, 5-year ARMs averaged 2.76 percent. 
  • 1-year ARMs: averaged 2.65 percent, with an average 0.4 point, dropping from last week’s 2.67 percent average. A year ago, 1-year ARMs averaged 2.61 percent. 
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Wednesday, September 18, 2013

Mortgage Interest Rates Remain Stable After Feds Decision Today!

 

Stock Market Soars on Fed’s Bond-Buying Announcement:

The Fed said it will keep pumping money into the economy at the same rate—a move that pushed the stock market to record highs. It also sent a warning to Republicans, writes Daniel Gross.

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Tuesday, September 17, 2013

Fed May Announce Bond Tapering This Week

The Federal Reserve is expected to announce a tapering of its bond purchase program Wednesday, which could have a big impact on mortgage rates.

The Fed has been purchasing $85 billion per month in long-term U.S. Treasuries and mortgage-backed bonds in a move known as "quantitative easing." The bond-purchase program has helped to keep mortgage rates at or near record lows in recent years.

On Wednesday, the Fed is to provide clear indication...

Read Full Article Here: Fed May Announce Bond Tapering This Week