Mortgage Rates Are Cooling Down

Freddie Mac released its weekly update on national mortgage rates this morning, showing continued moderation in rates across the board.

Thirty-year fixed rate mortgages (FRM) dropped six basis points over the past week to end at 4.31%. The rate reached a two-year high of 4.51% two weeks ago, and clocked in a year ago at 3.49%.

Fifteen-year FRMs shed two basis points over the past week, falling to 3.39%. Each of the most popular flavors of variable-rate mortgages dropped a basis point apiece, with 5/1 ARMs falling to 3.16%, and one-year adjustables to 2.65%.

Freddie Mac Vice President and Chief Economist Frank Nothaft expressed hope that falling rates will "help to alleviate market concerns of a slowdown in the housing market," noting that "low inventories of homes for purchase are putting upward pressure on house prices." Even if price tags are getting bigger, the belief is that lower interest payments on mortgages to buy them may help to even out the total cost.

While rates remain low by historical standards, they have risen in recent weeks after the Federal Reserve indicated it might slow its bond purchases later this year. The bond purchases have kept long-term interest rates low, encouraging more borrowing and spending.

-- Material from The Associated Press was used in this report.

link


Read/Post Comments (1) | Recommend This Article (1)

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.

  • Report this Comment On December 19, 2013, at 12:45 PM, ACavallari wrote:

    Before buying a timeshare, calculate the total cost of the timeshare, including mortgage payments and expenses, like travel costs, annual maintenance fees and taxes, closing costs, broker commissions, and finance charges. Then compare these costs with the cost of renting similar accommodations with similar amenities in the same location for the same time period. And remember, a timeshare is not an investment for profit or an interest in real estate that will likely appreciate over time. And if you try to resell your timeshare, it is unlikely you will get any way near what you paid for it:

    http://www.timesharescam.com/blog/167-cancel-timeshare-mortg...

Add your comment.

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: 2558342, ~/Articles/ArticleHandler.aspx, 11/27/2014 4:38:58 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