Currently, the 30-year fixed mortgage rate on Zillow Mortgage Marketplace is 3.34 percent, decreasing two basis points from 3.36 percent at this same time last week.
This represents the lowest rate reported since Zillow Mortgage Marketplace began in April 2008.
After peaking at 3.46 percent, the 30-year fixed mortgage rate fell to 3.33 percent and remained between 3.36 and 3.39 percent, before dropping to the current rate.
Erin Lantz, director of Zillow Mortgage Marketplace, stated, "Rates dropped this past week after the Federal Reserve announced more aggressive stimulus plans than most anticipated. The market expected some stimulus, but the Federal Reserve delivered more than expected, deciding to make QE3 ‘unlimited’ – with no defined end date – and coupling QE3 with a commitment to keep the federal funds rate close to zero through middle of 2015. This combination of aggressive and unlimited stimulus programs drove rates down to near record lows, and although rates rebounded somewhat later in the week, they still remain significantly lower than prior weeks."
Currently, the rate for a 15-year fixed home loan is 2.71 percent, while the rate for a 5-1 adjustable-rate mortgage is 2.45 percent.
This week, after a month of increases, mortgage rates reversed course.
According to the latest data released by Freddie Mac, the 30-year fixed-rate average slipped to 3.59 percent, which is down from 3.66 percent a week ago and 4.22 percent a year ago.
Since Thursday, August 2, rates had been increasing.
The 15-year fixed-rate average declined as well, going to 2.86 percent from 2.89 percent a week ago.
Last year at this time, it reached 3.39 percent.
Hybrid adjustable-rate mortgages decreased as well.
The five-year adjustable-rate mortgages dropped to 2.78 percent, which is down from 2.80 percent the previous week.
The one-year adjustable-rate mortgages decreased to 2.63 percent, which is down from 2.66 percent a week ago and 2.89 percent a year ago.
According to Frank Nothaft, Freddie Mac vice president and chief economist, lower bond yields led to the slip in mortgage rates.
Nothaft stated, “Treasury bond yields fell, allowing mortgage rates to follow, after the release of the July 31st and August 1st minutes of the Federal Reserve’s monetary policy committee. Committee members agreed that economic activity had decelerated more in recent months than they had anticipated at their last meeting in June. Some members even saw room for additional stimulus fairly soon if needed.”
According to real-estate website Zillow Inc., its real-time rate on 30-year fixed mortgages in the U.S. rose in the latest week from a record low.
Zillow stated that the 30-year fixed mortgage rate on its Mortgage Marketplace increased to 3.44% from 3.34% a week earlier, which was the lowest level since the Mortgage Marketplace launched in April 2008.
Erin Lantz, director of Zillow Mortgage Marketplace, stated, "Although there were a number of events this past week with the potential to move markets — announcements from the Fed and the European Central Bank as well as Friday’s jobs report — rates ended the week up only slightly from where they started."
Rates have remained in a range between 3.34% and 3.5% for eight straight weeks, Ms. Lantz added.
"Looking to next week, we expect rates will remain in this holding pattern until markets receive more clarity about the future of the euro-zone economy," she stated.
The rate for a 5-1 adjustable-rate mortgage was 2.46%, from 2.44% a week ago.
A 5-1 ARM has an initial rate that applies for the first five years of the loan and then adjusts annually.
The following is a list of restaurants and retailers that recently opened or signed new leases in the Houston, Texas area:
- Employee Solutions, located at Falcon Square Shopping Center at 12450 East Freeway
- Edible Arrangements, located at The Shops at Oak Forest on 43rd Street and Ella Boulevard
– Bizarre Bazaar, located at 6306 Fairbanks North Houston
– Salata, located at Sugar Land Town Square
Home prices increased again for the third straight month in April, gaining 0.8% from the previous month and 3.0% year-over-year, according to data released by the Federal Housing Finance Agency.
The index, which tracks purchase prices on houses with mortgages sold to or guaranteed by Fannie Mae or Freddie Mac across the nine U.S. Census divisions—was highest in the West, with the Pacific region reporting the most significant price gain, up 2.2%.
The Mountain division was just behind with a 1.9% improvement.
New England reported the least effective performance with a drop of 1.2%.
Annually, the Mountain region registered first with a 6.5% gain.
The positive news was echoed by the National Association of Realtors, which reported that existing-home prices gained 2.9% from April to May.
Paul Diggle, an economist at Capital Economics, stated, "Favorable levels of valuations and mortgage affordability mean that the foundations for a sustainable improvement in housing are firmly in place."
The 30-year fixed-rate mortgage average grew to 3.71% in the week ending June 14, up from a record low of 3.67% in the prior week, according to Freddie Mac.
The rate was 4.50% a year earlier.
In order to obtain the latest 30-year rate, payment of an average 0.7 point was required, according to Freddie, a buyer of residential mortgages.
Frank Nothaft, Freddie Mac’s chief economist, stated, "Fixed mortgage rates edged up slightly from record lows during a mild week of economic data releases."
The 15-year fixed-rate mortgage increased to 2.98% in the most recent week from a record low of 2.94% in the prior week.
Also, the average rate on the 5-year Treasury-indexed hybrid adjustable-rate mortgage declined to 2.80% from 2.84%.
The 1-year Treasury-indexed ARM fell to 2.78% from 2.79%.
The Homes.org weekly mortgage rate gives buyers and sellers a better understanding of what’s happening with mortgage interest rates across the nation.
The report provides information on the major factors effecting today’s mortgages – average rates, current economic activity and forecasts for trends in the mortgage market.
Recently, Homes.org forecast that mortgage interest rates would like hold steady or drop a few basis points which is what happened this week.
Homes.org discusses what led to the drop in mortgage interest rates and economic events this week that could have an effect on rate in the coming weeks.
This week, the 30-year fixed rate mortgage decreased 2 basis points and the 15-year fixed rate increased 1 basis point.
Home prices significantly increased in March among homes with mortgages backed by Fannie Mae and Freddie Mac, the Federal Housing Finance Agency reported.
The agency’s monthly purchase-only index surpassed expectations with a 1.8% rise for the month, bringing prices 2.7% higher than their year-ago level.
The increase was the highest seen at least 20 years (data started in 1991).
The quarterly purchase-only index was up 0.6% from the fourth quarter of 2011 and improved 0.5% year-over-year, which is the first annual increase since 2007.
Rates on fixed-rate mortgages reached record lows this week, with the 30-year fixed-rate mortgage averaging 3.83% in Freddie Mac’s most recent survey of conforming mortgage rates.
Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Following April’s weaker-than-expected employment report, and the French and Greek election results raising concerns over the stability of the Euro currency zone, long-term Treasury bond yields declined allowing fixed mortgage rates to ease to new all-time record lows this week."
Last week, the 30-year fixed-rate mortgage averaged 3.84% and 4.63% a year ago.
Rates on the 15-year fixed-rate mortgage averaged 3.05% for the week ending May 10, which is down from 3.07% last week and 3.82% a year ago, according to the Freddie Mac survey.
Average interest rates on 5-year Treasury-indexed hybrid adjustable-rate mortgages averaged 2.81%, which is down from 2.85% last week and 3.41% a year ago.
Rates on 1-year Treasury-indexed ARMs grew, averaging 2.73%, up from 2.7% last week. The ARM averaged 3.11% a year ago.
In order to obtain those rates, the fixed-rate mortgages required payment of an average 0.7 point and the ARMs required an average 0.5 point.
A point is 1% of the mortgage amount, charged as prepaid interest.
According to the 2012-Q1 edition of the Texas Quarterly Housing Report, the Texas real estate market gained positive momentum in the first quarter of 2012.
The volume of single-family home sales in Texas was 12 percent higher than the same quarter of 2011 and the median price grew by nearly three percent over the same time frame.
Joe Stewart, chairman of the Texas Association of Realtors, stated, "The watchword for Texas real estate in 2011 was ‘consistency,’ in both sales volume and price. That allowed us to emerge from last year with stable sales volumes and strong property values. Now, in 2012′s first-quarter results, we see a strong increase in sales volume and a meaningful increase in the median price. That indicates positive momentum for the year ahead."
For the period of January through March 2012, the volume of single-family home sales in Texas was 45,502, which is 12 percent more than the same quarter in 2011.
The median price for Texas homes during the quarter was $147,100, which is 2.7 percent more than 2011-Q1.
Jim Gaines, Ph.D., an economist with the Real Estate Center at Texas A&M University, stated, "We believe several factors are driving the strong performance of the first quarter, including continued job growth in Texas and some increased access to credit for home buyers. Most of all, we’re starting to see a shift in Texans’ attitudes toward real estate. Essentially, buyers and sellers have higher expectations for the market, so they’re beginning to take action and we’re starting to see the impacts."