Thursday, February 4, 2010

Above 5% For How Long?

The 30-year fixed climbed back above five percent this week, rising two basis points to 5.01 percent, according to mortgage financier Freddie Mac.

A year ago, the popular mortgage program averaged 5.25 percent, meaning interest rates have been attractive for a long, long time now.

“Mortgage rates remained relatively stable for a second week amid news of a strengthening housing market,” said Frank Nothaft, Freddie Mac vice president and chief economist, in a release.

“Pending existing home sales rebounded by 1 percent in December from a record drop in November that was due in part to the original expiration of the homebuyer tax credit, according the National Association of Realtors®.”

The 15-year fixed averaged 4.40 percent this week, up from 4.39 percent last week, but well below the 4.92 percent average seen a year ago.

The five-year adjustable-rate mortgage climbed to 4.27 percent from 4.25 percent, but still remains about a point below the 5.26 percent seen this time last year.

Finally, the one-year ARM bucked the trend, slipping to 4.22 percent from 4.29 percent, and easily beating its year-ago average of 4.92 percent.

The interest rates above are good for conforming loan amounts with a loan to value of 80 percent; mortgage pricing adjustments may lower or raise your actual interest rate.

Jumbo loans continue to price a percentage point or higher than conforming loans.

Any questions or concerns don’t hesitate to contact me, Gene Neal your Mortgage Expert.

Tel (631) 687-3510 Ext. 101

Fax (631) 687-3513