NEW YORK - fixed mortgage rates fell this week to the point the lowest of the year, offering to encourage owners to save money by refinancing their loans.
Freddie Mac said Thursday that the average rate on the 30-year loan fell to 4.61%. It is towards the bottom of 4.63% and the lowest level since mid-December.
The average rate in the 15-year fixed mortgage, a popular refinancing option, slipped 3.80% of 3.82%. That marked the the lowest point since late November.
Rate monitor performance on the ticket of 10 years of the Treasury Board, which fell to the lowest level of the year this week.
Low rates were not sufficient to jumpstart the weak housing market. Fewer people purchased previously occupied homes in April, the National Association of Realtors said Thursday. Sales fell at an annual rate, seasonally adjusted of 5.05 million units, well below the 6 million homes each year that economists have a healthy market.
However, the number of borrowers who seek to refinance is now at the highest level since the second week of December, according to the Mortgage Bankers Association. Refinancing activity increased 33 percent in the last five weeks, the decline in the rate of mirroring.
Despite the gains, refinancing is only half the level it reached in the autumn of last year when mortgage rates is fallen down Records. The 30-year home loan rates hit a minimum of four decades of 4.17% in November. 15 Year mortgage rates at 3.57% in the same month, the level lowest on records dating back to 1991.
"We do not see a boom (refinancing) by any means," said Pava Leyrer, President of the National Mortgage in Michigan heritage.
She said many borrowers refinanced when rates were lower than last year. Others do not have enough equity in their homes because the values have fallen too much, or their credit is not polished enough for them to qualify.
And those who can shave off percentage point or more than their face mortgage rate closing costs pleased this year due to a recent tax increases for appraisals, title insurance and other costs. Which could offset any savings from a reduction in the rate of interest.
"If it is a decision purely rate, the difference must be of one year and a half percentage points," said Ritch Workman, co-owner of the mortgage Workman in Melbourne, Florida
Workman has been an increase in applications for loans mortgage purchase. Potential buyers are taking advantage of the combination of low rates and falling real estate prices.
To calculate the average mortgage rates, Freddie Mac collects rates lenders across the country on Monday to Wednesday of each week. Rates fluctuate often significantly, even within a single day.
The average rate for a five-year rate mortgage increased 3.41-3.48%. The loan of five years hit at 3.25% last month, the lowest rate on records dating back to January 2005.
The average rate on a loan variables-one year also increased 3.15 3.11%, the lowest level for the rate of last year.
The rates do not include the cost of the add-on, called points. A point is equal to 1% of the total amount of loan. The fee for the 30-year fixed average ready and ready fixed 15 years in the survey of Freddie Mac was 0.7 point. The average fee for the five-year arm and the arm of 1 year was 0.6 of a point.
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