Real Estate Pro Articles
   
   

How Interest Rates Are Decided for Your Loan



[Valid RSS feed]  Category Rss Feed - http://www.realestateproarticles.com/rss.php?rss=266
By : Paul Escobedo    99 or more times read
According to a weekly survey of mortgage rates, rates rose last week - bringing the average 30 year fixed-rate mortgage ever closer to five percent. It remained, however, below last year's level.

Mortgage rates normally follow bond yield, which move contrariwise to Treasury prices.

In March, they hit higher than at any point since April of last year's slump when the Treasury demonstrated economic uncertainty. Japan's ever-worsening crisis induced investors to seek bonds and as a result rates dropped last week.

The rise has been attributed to the world's political concerns and February's inflation data that turned out to be much higher than expected.

The week ending Thursday found that they average 4.81 percent. This represented an increase of .05 percent but is still lower than last year's 4.99 percent. By comparison, rates on 15-year mortgages averaged 4.04 percent, also up slightly from last week but down.3 percent from last year.

5-year Treasury indexed hybrid ARM experienced very similar fluctuations - 3.62 percent last week, 3.57 percent the week prior, but 4.14 percent last year. 1-year Treasury-indexed ARMs averaged 3.21 percent, again up from the prior week but down from last year.

To benefit from these rates, a payment averaging 0.7 point was required. Other mortgages called for an average 0.6 point - a point representing 1 percent of the mortgage amount (charged as prepaid interest).

The average interest rate for the 30 year mortgage has steadily increased over the last three weeks. This developing trend could be a sign that the fluctuations in the average might soon come to an end. Over the last few months the averages for both the 30-year and 15-year mortgages have been on a roller coaster ride, gaining slightly just to slip the next week.

According to the weekly survey of mortgage rates from Freddie Mac, the average rate for a 30-year fixed-rate mortgage hit above 5% for the week ending February 10th with a posting of 5.05%. Since February, rates have declined only to increase in the following weeks. Rates are expected to hit above the 5% mark in the near future and continue to rise until they stabilize somewhere under 6% during 2011.

The latest data released by Freddie Mac in the companies weekly survey of mortgage rates for the week ending April 7th shows that average rate for both the 30-year and 15-year fixed rate mortgages increased week over week. The average for the 30-year fixed-rate mortgage for the week ending April 7th was posted at 4.87%, a slight increase from the 4.86% average for the week prior and still significantly lower than the 5.21% from the previous year. The average for the 15-year fixed-rate mortgage for the week ending April 7th was posted at 4.1%, a slight increase from the 4.09% posted the prior week and much lower than the 4.52% posted the prior year.

The average for the five-year Treasury-indexed hybrid adjustable-rate mortgage increased to 3.72% when compared to the previous weeks 3.7%. That rate is lower than the previous year's posting of 4.25%. The average for the one-year Treasury-indexed adjustable-rate mortgage decreased week over week with the latest posting of 3.22%, down from 3.26% from the previous week and down from the 4.14% posted the previous year.

Mortgage rates have risen again for the fourth consecutive week, according to the weekly survey of mortgage rates conducted by Freddie Mac. While the increase was slight, this could be the beginning of a trend. Mortgage rates have been expected to reach and stay of the 5% mark for months now. The 5% mark has already been surpassed this year when the average 30-year fixed-rate mortgage was posted at 5.05% for the week ending February 10th. After that posting, the 30-year fixed-rate average fell below 5% and is now on an upswing.

According to the most recent data from the weekly survey of mortgage rates conducted by the mortgage giant Freddie Mac there was a slight week over week rise in both the 30-year and 15-year fixed-rate mortgages. According to the survey, the average for the 30-year fixed-rate mortgage increased to 4.91% for the week ending April 14th. That average rate is up from the 4.87% the prior week, but still down from last year's posting of 5.07% for the same period.

The average for the 15-year fixed-rate was 4.13% for the week ending Thursday, April 14th. That rate is an increase from the 4.1% from the previous week. The 15-year fixed-rate average is still below the average for this time last year when the rate was 4.08%.

According to the survey, the five-year Treasury-indexed-rate mortgages rose to 3.78%, up from 3.72% the prior week and down from 4.08% the prior year. The one-year Treasury-indexed adjustable-rate mortgage was 3.25%, that rate is up from the 3.22% the prior week and down from the 4.13% from the prior year.

In order to obtain those rates for the 15-year fixed-rate mortgage, borrowers were required to pay a 0.7 point. Borrowers were required to pay a 0.6 point to obtain the other types of mortgages. A point is defined as 1% of the mortgage amount and is charged as prepaid interest.
New Homes Section is a leading resource for home buyers searching for new homes, home builders, green housing information and construction news. Stop by New HomesSection.com today.

Warning: include(): http:// wrapper is disabled in the server configuration by allow_url_include=0 in /home/customer/www/realestateproarticles.com/public_html/articledetail.php on line 105

Warning: include(http://www.realestateproarticles.com/catads/nas468x60cat266.php): failed to open stream: no suitable wrapper could be found in /home/customer/www/realestateproarticles.com/public_html/articledetail.php on line 105

Warning: include(): Failed opening 'http://www.realestateproarticles.com/catads/nas468x60cat266.php' for inclusion (include_path='.:/usr/local/php55/pear') in /home/customer/www/realestateproarticles.com/public_html/articledetail.php on line 105

Related Articles



Actions
Print This Article
Add To Favorites



Sponsors

 

 

© All rights reserved to Real Estate Pro Articles