Prospective homeowners who were hoping to take advantage of near-record low interest rates on residential mortgages still have time to act, as borrowing costs for both fixed-rate mortgages (FRMs) and adjustable-rate mortgages (ARMs) were largely unchanged for the week ending November 29. According to Freddie Mac, the government-backed lender, improving economic data contributed to the lack of significant rate changes.
The FRM composite experienced incremental upward growth during this week. The interest cost on a 30-year mortgage, which is considered by some economists to be the benchmark loan, increased from 3.31 percent to 3.32 percent. The 15-year's development was nearly identical, rising to 2.64 percent from 2.63 percent. During November 2011, these rates were recorded as 4.00 percent and 3.30 percent, respectively.
In the ARM market, the changes were more diverse than previous weeks. The one-year ARM held steady at 2.56 percent, the same as last weeks, though this rate is not too far from last year's 2.78 percent. The five-year ARM was the only loan reported on in Freddie Mac's Primary Mortgage Market Survey that became cheaper, with its borrowing cost sliding from 2.74 percent to 2.72 percent.
Freddie Mac officials, including the organization's chief economist, Frank Nothaft, noted in a press release that an improving economic climate was encouraging investors to purchase American governmental debt, which has led to an overall decline in the nation's interest rates.
"Mortgage rates were virtually unchanged this week amid growing concerns around the fiscal cliff. Although low mortgage rates failed to boost new home sales in October, year-to-date sales are up 20 percent compared with 2011 volumes, and there are growing signs of a turnaround in house prices," Nothaft was quoted as saying.
With borrowing costs still very much affordable, it might be time to shop around the housing market if you have been considering doing so. RealtyUSA, a New York real estate agency with over 30 years of experience as an independent company, can help you find the property that suits both your wants and your needs.
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