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Experts Explain: “What is Operation Twist?”
The Fed announced that it will use a strategy from the ’60s to try to boost the economy.
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Experts Explain: What is Operation Twist?
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Category Archives: Interest Rates
Fixed-Rate Mortgages Cling To Record Lows
A sluggish economy and investor concerns over the European debt markets left mortgage rates largely unchanged the week ending September 22, 2011.
Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®) the week ending September 22, 2011, showing fixed-rate mortgages changing little amid sluggish economic, mixed housing data, and ongoing concerns over the European debt markets. The 30-year fixed remained unchanged at 4.09 percent, while the 15-year fixed dropped a single basis point to 3.29 percent, marking a new record low.
Martgage Rates Mired In Quicksand
Fixed-Rate Mortgages Continue To Sink to New Record Lows
Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®) for the week ending September 15, 2011. Fixed-rate mortgages remain near their 60-year lows as ongoing investor concerns over the European debt crisis keeps Treasury bond yields low. The 30-year fixed averaged 4.09 percent, a new all-time low. The 15-year fixed, a popular refinancing option, also reached a never before seen low for the week averaging 3.30 percent.
Mortgage Rates: New Record Lows Again
Eurozone debt, weak U.S. employment reports, and Fed pessimism placed downward pressure on bond yields and pushed fixed mortgage rates to new lows this week.
Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®) for the week ending September 8, 2011, showing mortgage rates, both fixed and adjustable, hitting record lows amid market and employment concerns and economic uncertainty. The previous record lows for fixed mortgage rates, and the 1-year ARM, were set the week of August 18, 2011. The 5-Year ARM matched its all-time low set last week at 2.96 percent.
Mortgage Rates Maintain Historic Lows
Weaker economic data reports eased upward pressure on mortgage rates this week and kept them at or near all-time record lows said Freddie Mac for week ending 9/1/11.
Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®) for the week ending September 1, 2011, showing mortgage rates declining amid continued weak economic and housing data. While the 30-year fixed held steady, the 5-year ARM set a new all-time record low having fallen for the eighth consecutive week and now standing at 2.96 percent.
Federal Reserve: Why Won’t They Buy?
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Quote: Mark Goldman
The Federal Reserve hoping to revive demand for housing, vowed to not raise key rates until 2013. This ploy is backfiring. Why? Record low rates have failed to spark more buying because buyers now see no urgency to… well, buy; and Mark Goldman makes obvious a second big reason…
“Low mortgage rates are only helpful to home buyers who aren’t paralyzed with fear after watching their 401(k) disappear,” says Mark Goldman, a lecturer at the Corky McMillin Center for Real Estate at San Diego State University. “For now, people see the stock market as a casino table.”
Source: “Housing’s Drag on Economy May Worsen,” Bloomberg News (Aug. 21, 2011)
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Mortgage Rates Higher for the Week
Mortgage Rates Follow Bond Yields Higher for the Week
Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®) for the week ending August 25, 2011, showing mortgage rates moving higher from the previous week’s record lows as Treasury bond yields moved higher and other housing data showed slight improvement. However, the 5-year ARM did decline to 3.07 percent thereby setting a new all-time record low. Continue reading
Will Low Rates Entice Nervous Consumers?
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“Under normal circumstances, the Fed’s announcement might have attracted new home and car buyers and prompted credit card holders to rack up fresh charges. But with unemployment high and those with jobs worried about keeping them, consumers are more concerned about paying off the loans they already have than adding more debt. And by showing its hand for the next two years, the Fed may have inadvertently invited prospective borrowers to put off large purchases.”
MOTOKO RICH and TARA SIEGEL BERNARD, New York Times, Aug. 14, 2011
Mortgage Rates Plunge To 50 Year Lows
Both fixed and adjustable mortgage rates sink to depth not seen in 50 years
Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®) for the week ending August 18, 2011, showing mortgage rates, fixed and adjustable, reaching all-time lows providing further incentive for those homeowners looking to refinance. The 30-year fixed averaged 4.15 percent, breaking the previous record low of 4.17 percent set November 11, 2010.
Record Lows for Mortgage Rates
As expected mortgage rates continued to follow the treasury note yields down this week to record year and all-time lows.
Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®) for the week ending August 11, 2011, showing mortgage rates continuing to decline with the 30-year fixed averaging 4.32 percent marking a new low for 2011, and the 15-year fixed, 5-year ARM, and 1-year ARM averaging record lows this week.
U.S. Credit Downgrade and Real Estate
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What are Realtors to make of the credit downgrade of the U.S. government announced by Standard & Poor’s?
“Even if rates were to rise because of the downgrade, this fact is less important in light of the current overly-stringent underwriting standards and the general lack of consumer confidence about the economy. A 30-year fixed rate rising from 4.3% to 4.6% will not change the housing game that much, but a return to normal underwriting standards and a boost to consumer confidence will be the true game changer.”
- Lawrence Yun, Chief Economist & Senior Vice President, Research, National Association of Realtors®.
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