Fixed mortgage rates stay low
Diane Alter – AHN News Reporter
New York, NY, United States (AHN) – The average rate on the 30-year fixed mortgage stayed near its record low for the sixth consecutive week. But, the historically low rates have done little to goose the ailing housing market.
On Thursday, mortgage giant Freddie Mac said the rate on the 30-year home loan edged down to 3.99 percent from 4 percent the previous week. It dropped to a record low of 3.94 nine weeks ago, according to data from the National Bureau of Economic Research.
The average rate on the 15-year fixed mortgage ticked down to 3.27 percent from 3.30 percent. It also hit a record low nine weeks earlier when it fell to 3.26 percent.
For all of but two weeks in 2011, rates have been below 5 percent. Yet this year may turn out to be the worst for home sales in 14 years.
The record low rates have not helped homes sales. Sales of previously owned homes are just a hair ahead on last year’s figures, which were the worst in 13 years. In addition, new homes sales appear to be headed for their worst year on records dating back 50 years.
High unemployment and tight bank lending standards have made it much harder for potential home owners to qualify for loans. Also, many Americans are reluctant to pour money into homes that could lose value over the next several years.
GSE Repurchase Demands Nearing $20 Billion
The acting director of the Federal Housing Finance Agency testified that more than $11 billion in repurchase demands issued by Fannie Mae and Freddie Mac were pending at the end of last year. FHFA regulates the two secondary lenders. In addition, lenders completed repurchases on nearly $9 billion in faulty files.
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The Real First Step to Getting a Great Deal on Your Next Mortgage
photo credit: TheTruthAbout…
In order for you to get your best deal on a mortgage you must first understand the types of companies that are offering mortgage products. Learn how they make their money and half the battle is won! These mortgage companies can be simplified as:
- Brokers
- Broker/Lenders
- Mortgage Lenders
- Banks
Before we continue, I need to stress this single point. There ain’t no free lunch! All companies are in business to make a profit. If your intention is to get someone to work on your loan for free, you will get what you pay for. Read more
