Dramatic Turn In Mortgage Rates

Dramatic Turn In Mortgage Rates



Dramatic Turn in​ Mortgage Rates
The Freddie Mac's Primary Mortgage Market Survey released last week,​ showed that both the​ long term and short-term conventional mortgage interest rates are going to​ suffer huge downward turns .​
This was forecasted before Tuesday when Federal Reserve made half point rate cut.
Though there is​ no direct relationship between the​ Federal Reserve's twisted rates and the​ treasury rates that determine mortgage interest rate,​ but still there is​ dexterity between both the​ rates .​
In the​ survey by Freddie Mac and Mortgage Bankers Association,​ it​ is​ predicted that the​ interest rate during the​ coming week is​ on​ the​ verge of​ fall again.
Freddie Mac mentioned that in​ the​ previous week the​ 30-year fixed rate mortgage averaged 6.31 percent with an​ average of​ 0.5 points .​
This was 15 basis points lesser than the​ average of​ the​ week before that,​ when both the​ fees and points were at​ an​ average of​ 0.5 point .​
After the​ week ended in​ May 17 when the​ interest rate averaged 6.21 percent along with 0.4 point,​ this was the​ lowest rate .​
During the​ last year at​ this point of​ time the​ interest rate of​ 30 year fixed mortgage was 6.43 percent.
The average interest rate of​ 15 year Fixed Rate Mortgage fell down from 6.15 percent with 0.6 point to​ 5.97 percent with 0.4 .​
Again this is​ the​ second lowest interest rate after May 17 when the​ average rate was 5.92 percent .​
During the​ year 2018,​ at​ this time the​ average rate was 6.11 percent.
In case of​ Adjustable Rate Mortgages,​ during last week the​ one-year treasury indexed adjustable rate mortgage fell down 12 basis points from 5.74 percent average interest rate .​
But on​ the​ other hand the​ fees and points inclined from 0.6 to​ 0.8.
It is​ believed that the​ drop of​ almost 0.15 percent in​ the​ interest rate of​ the​ 30-year fixed rate mortgage and 15 year fixed rate mortgage will give some liberty to​ the​ borrowers who are looking to​ refinance or​ purchase a​ home .​
Due to​ this turn down in​ the​ mortgage market all the​ average interest rates are lower than what it​ was during the​ same time of​ the​ previous year .​
The recent borrowers who took a​ mortgage loan just before the​ week ended in​ September 14 are pretty unhappy and cursing their luck.
In a​ Mortgage Banker Association's report,​ it​ is​ said that this week the​ rates have gone little high .​
For instance,​ the​ 30 year fixed rate mortgage has gone high from 6.25 percent last week to​ 6.29 percent this week .​
Similarly the​ 15 year fixed rate mortgage gone high from 5.90 percent last week to​ 5.99 percent this week.
Mortgage activity witnessed a​ rise of​ 2.4 percent on​ the​ basis of​ seasonal adjustment from the​ previous shortened week due to​ the​ Labor Day Holiday .​
The unadjusted rise was about 25.6 percent and was 12.8 percent higher compared to​ the​ same time in​ the​ year 2018.
As a​ part of​ total mortgage activity,​ refinance mortgages rose up to​ 43.5 percent from 42.1 percent last week whereas the​ share of​ mortgage applications for adjustable rate mortgage once again dropped from 13.2 percent to​ 12.6 percent.




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