Mortgage Rates Nearly Score a Lottery -- 2.56%, 2.56%, 2.56% ... 3.35%

Freddie Mac released its weekly update on national mortgage rates this morning, reflecting continued declines in the cost of getting a loan to buy a home.

For the fifth week in a row, 30-year fixed rate mortgages (FRM) declined, falling five basis points, to 3.35%. Shorter-term 15-year FRMs also dropped five b.p., to 2.56%. Curiously, this is the precise rate now attached to both variable 5/1 ARMs, and one-year ARMs, as well -- 2.56%.

Result? Getting a mortgage where the rate cannot rise for the next 15 years now costs no more than a rate fixed for only five years ... or for one.

Commenting on the numbers, Freddie Mac vice president and chief economist Frank Nothaft linked the across-the-board declines to "the release of the advance estimate of real GDP growth for the first quarter of the year, which rose 2.5 percent but fell short of the market consensus forecast." On the plus side, Nothaft predicted that "near record low mortgage rates should further drive the housing market recovery over the near term."


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2405708, ~/Articles/ArticleHandler.aspx, 10/23/2014 9:51:06 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement