Fixed mortgage rates jogged higher in the past week, with the average 30-year fixed rate mortgage rising from 6.64 percent to 6.67 percent, according to Bankrate.com's weekly national survey of large lenders. This is the highest since the week of June 12, 2002. The 30-year fixed rate mortgages in this week's survey had an average of 0.36 discount and origination points.
The average 15-year fixed rate mortgage popular for refinancing stepped up to 6.29 percent. On larger loans, the average jumbo 30-year fixed rate was unchanged at 6.83 percent. Adjustable rate mortgages inched higher as well. The average 5/1 adjustable rate mortgage ticked up to 6.32 percent,and the average one-year ARM nosed higher to 5.89 percent.
5/1 ARM: 6.32% -- up from 6.31% last week (avg. points: 0.38)
How are rates doing compared to May 2005?
Fixed mortgage rates have increased notably compared to one year ago. This time last year, the average 30-year fixed mortgage rate was 5.81 percent, meaning that the monthly payment on a loan of $165,000 was $969.19. Although fixed mortgage rates have been up and down since, the average 30-year fixed rate is now 6.67 percent, meaning the same loan originated now would carry a payment of $1,061.43.Monthly payments on an average 30 year fixed loans are up 9.5% since last year this time. Clearly, higher monthly payments mean homebuyers can be loaned less money. The housingheads are not certainly not cheering.
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Months' Supply of Single-Family Homes on Market
ReplyDeleteOn the Housing Market
In his recent article (3/30/06), the Chief Equity Strategist for Citigroup Investment Research, Tobias Levkovich wrote that the investment community appears to be torn over the housing markets; some seers perceive an imminent crash while others forecast a healthier cooling-off period, as witnessed in Australia and the United Kingdom.
Most recently, the bulls focused on the strong existing home sales figures for February, while the bears concentrated on the weak new home sales figures. In the simplest terms, the debate seems to be “cool-down” versus “meltdown.” The “crash” theorists believe that months of supply and new homes available for sale suggest an imminent major break for homeowners, which will devastate consumers and thereby the broad U.S. economy.
The “cool down” adherents see a moderation that alleviates upward yield pressures and allows for equity market gains, while also allowing capital spending and employment growth to spur GDP. The debate is quite vigorous, but we come down on the “cool-down” side, since we only see real estate bubble-like characteristics in limited markets, rather than across the United States.
Source: Tobias M. Levkovich,
Smith Barney US Equity Strategist
does it matter?
ReplyDeleteWho get a 30yr fixed rate anymore?
LOL!
ReplyDeletebryce (with a 30 yr. conforming fixed)