30 year Mortgage Rates30-year mortgage interest rates
WHATINGTON - US long-term mortgage rates dropped this weekend for the second consecutive weeks, with relatively lower rates still not triggering home selling. Mortgagor Freddie Mac said Thursday the moving rate on 30-year, fixed-rate mortgage dropped to 4.53 per cent from 4.59 per cent last week. 4.59 per cent of the total mortgage portfolio was in the hands of a mortgagee. Longgterm interest rates on loans are at their highest level for seven years.
On May 24, the 30-year mean index peaked this year at 4.66 per cent. On the other hand, the ratio a year ago was 3.89 per cent. Mean rates for 15-year fixed-rate borrowings dropped to 4.01 per cent this weekend from 4.05 per cent last week. 15-year fixed-rate borrowings were down from 4.01 per cent last year. Despite higher rates of inflation and unrest on the global finance market, mortgage interest rates have largely stayed constant since last year.
However, the break in lending rates "does not lead to increased home sales," said Freddie Mac head economist Sam Khater. Soaring house prices, scarce stocks of affordably priced housing and historic higher mortgage rates are to blame, Khater said. In order to determine mortgage rates, Freddie Mac asks creditors across the nation between Monday and Wednesday per week.
Averages do not involve additional charges, known as points, which most borrower have to owe to get the cheapest interest. Compared to last weeks figure, the mean charge for 30-year solid mortgage loans stayed at 0.5 points. Likewise, the 15-year mortgage charge stayed at 0.5 points. A five-year floating interest mortgage declined to 3.87 per cent, down from 3.90 per cent last weekend.
30 Year Mortgage Rates briefs this week
According to Freddie Mac, a member of the US subprime mortgage community, the 30-year mortgage interest spread fell by one base point to 4.59 this weekend as higher interest rates and house price increases mitigate a mild summers period that usually sees an uptrend in home buying. Longgterm mortgage rates are at their highest level in the last seven years.
Mortgage reference rates for 30-year mortgages rose to 4.66% on 24 May, up from 3.9% a year earlier. Moreover, the median interest for the 15-year-old, fixed-rate loans decreased this week to 4.05%, down from 4.08% last week. 4.08% in the same period. Freddie Mac's figures confirm that the National Home Builders Association reports that mortgage rates rose more than 30 bps in the second quarter to 4.67% from 4.34% in the prior sequential period.
Supported by a bullish economy on the financial markets as well as figures showing GDP rose by 4.1% in the second Q2, the Federal Reserve is likely to raise interest rates in September, but mortgage rates are still at historic low points. "The Fed has taken a prudent stance on interest rate hikes since the beginning of the rally.
The mortgage market reacted slowly and conservatively. This has also kept interest rates down historically," said Taylor Marr, chief economic officer at the Redfin property agency.