Long-Term Mortgage Rates Rise; ARM Prices Hold Steady

30-year fixed-rate mortgage averages 4.33%.

Apr 24, 2014 at 2:12PM

Freddie Mac released its weekly update on national mortgage rates on Thursday morning, showing an increase in the average price for fixed-rate mortgages and no change in adjustable-rate mortgages.

Both 30-year fixed-rate mortgages (FRMs) and 15-year FRMs got more expensive over the past seven days, rising six basis points apiece. 30-year FRMs now average 4.33% interest, and 15-year FRMs cost 3.39%. One year ago, 30-year FRMs cost 3.40%, and 15-years 2.61%.

Neither 5/1 adjustable-rate mortgages (ARMs) nor 1-year ARMs, however, changed in price at all. 5/1 ARMs cost 3.03%, just like a week ago, and 1-year ARMs are still 2.44%. A year ago, these rates were 2.58% and 2.62%, respectively.

The fact that existing-home sales declined 0.2% in March, while new-home sales fell 15% would ordinarily be expected to push mortgage interest rates down, rather than up. However, Freddie Mac vice president and chief economist Frank Nothaft  noted in a statement a possible connection between the unexpected rise in long-term fixed mortgage rates and an "uptick" in 10-year Treasury yields over the past week.

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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