Current Mortgage Rates "Ease" as Market Takes a Breather

Posted by  on Oct 08, 2010


Current Mortgage Rates Ease

The mortgage interest rate figures from Freddie Mac for week ending April 15, 2010 show a very slight dip in the average for a 30-year, fixed-rate mortgage (FRM). It was 5.07% that week, compared with 5.21% during the previous seven days, and 4.82% this time last year. Frank Nothaft, who is a Freddie Mac vice president and its chief economist, commented:

"After rising for four consecutive weeks, mortgage rates eased back to where they were two weeks ago and still remain historically low... Low mortgage rates continue to help stabilize the housing market. The Fed noted that residential activity increased while home prices were stable across most of its 12 Districts over the six weeks prior to April 5th."

Mortgage Brokers Concur

Although for technical reasons the Mortgage Bankers Association's (MBA's) weekly figures often differ from Freddie Mac's, the latest data from both organizations show the same trend. The mortgage bankers' numbers suggest that the average rate for a 30-year FRM during week ending April 9, 2010 was 5.17%, down from 5.31% over the previous seven days.

Mortgage Refinance Deals Down

However, that drop was not enough to stimulate the MBA's mortgage refinance index, which showed that the number of applications for refinancings dropped by nine percent. That was the fifth week in a row that refinancing applications had declined.

Mortgage Loan Delinquencies Down

In more cheerful news, the Wall Street Journal reported April 19, 2010 that the number of delinquent mortgage loans (those in foreclosure, or 30 days or more past due) fell sharply in March. The newspaper quoted data supplied by LPS Applied Analytics that showed that the total number of these fell 8.6% that month.

Such figures can seem meaningless when expressed as percentages. So think of it this way: the number of American households that cannot keep up to date with mortgage loan payments has fallen by 647,000 since January.

The president of LPS Applied Analytics, Ted Jadlos, told the Journal:

"We're not out of the woods, but this appears to be a turning point. This is the first time we've seen improvement across all stages of mortgage delinquency."

Mortgage Quotes Here

If you're considering buying a home or refinancing, you should probably make your move before the current era--which has seen some of the lowest mortgage rates in history--finally draws to a close. Check out competitive mortgage quotes here.



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