Mortgage Events

Posted by  on Apr 16, 2009
A mortgage is a method of using property as security for the payment of a debt. The term mortgage refers to the legal device used in securing the property, but it is used to refer to the debt secured by the mortgage, the mortgage loan. In most jurisdictions, mortgages are strongly associated with loans secured on real estate rather than other property and in some cases, only land may be mortgaged. In many countries, it is normal for home purchase to be funded by a mortgage. In countries where the demand for home ownership is highest, strong domestic markets have developed, notably in Spain, the United Kingdom and the United States.

If you are interested in buying a home, it is a good idea to keep up with current event and changes in the economy in order to understand what kind of deal you are getting. If you are thinking about refinancing as well, this is also important. Recently, there was the release of the results of Primary Mortgage Market Survey, in which the thirty-year fixed-rate mortgage averaged six percent with an average 0.4 point for the week ending December 21, 2006, up slightly from last week when it averaged 6.12 percent. Last year at this time, the thirty-year FRM averaged 6.26 percent. The 15-year FRM this week averaged 5.89 percent with an average 0.4 point, up from last week when it averaged 5.86 percent. A year ago, the 15-year FRM averaged 5.79 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.96 percent this week, with an average 0.5 point, up from last week when it averaged 5.92 percent. A year ago, the five-year ARM averaged 5.82 percent. One-year Treasury-indexed ARMs averaged 5.44 percent this week with an average 0.6 point, down slightly from last week when it averaged 5.45 percent. At this time last year, the one-year ARM averaged 5.22 percent.

A quiet week for financial markets translated into a quiet week for mortgage rates as well. What is interesting to note is that the 30 year FRM this week is 1/8 of a percentage point lower than the thirty-year FRM was at this time last year. This could bode well for housing in the New Year, and there has been a spike in refinancing activity as rates have come down. Borrowers who have ARMs that are scheduled for a rate adjustment in 2007 may want to consider refinancing those loans now to take advantage of the lower rates currently available.


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