Last week, the 30-year fixed mortgage interest rate is at 5.14 percent but this week it is at its lowest in 37 years at 5.10 percent as announced by Freddie Mac vice president Frank Nothaft. It is one of the lowest since 1971 when Primary Mortgage Market Survey began.
Home mortgage rates are now declining due to the efforts of the Federal Reserve. They are planning to buy $500 billion worth of home mortgage securities with the help of Freddie Mac, Fannie Mae and Ginnie Mae. This project also wants to buy $100 billion of debts given out by Fannie Mae, Freddie Mac and the Federal Home Loan Bank.
The housing industry is a vital part of the economy because it also affects the construction industry and the marketing of appliances and furniture. Housing was this ugly in the Great Depression when there was less demand for new homes, borrowing is tougher and foreclosure brought median house prices down. So, if housing dramatically improves this year, we can finally pull ourselves out of this recession.
It is very understandable why the government is doing their best to resolve foreclosure problems rooted from unmanageable and unaffordable home mortgage rates.
Different Interest Rates Decline Too
15-year fixed home rate mortgage is now at one of its lowest at 4.83 percent from 4.91. Same time last year, it is as high as 5.68 percent.
ARMs or one-year adjustable rate mortgages are also down to 4.85 from last week’s 4.95 and last year’s 5.47.
5/1 ARM or 5 year fixed rate and adjustable each subsequent year is now at 5.57 percent unlike last week’s 5.49 percent. 5/1 ARM is usually around 5.78 percent.
For 30-year home mortgages, banks charge 0.7 percent in fees and points which is once again down from last week’s 0.8 percent. The 0.7 percent for fees and points on 15-year mortgages did not change.
Author Resource:-
Cassiano Travareli has been educated in the finer points of the foreclosures market over 5 years. Read about the following article Federal Efforts Bring Home Mortgage Rates to Its Lowest by Cassiano Travareli on FinancingAndMortgage.com - Mortgage Refinancing Help from the Experts.
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