To All My Readers: Interest rates continue to be at an all time low due to our sluggish economy and feds reluctance to in any way put in danger the recovering housing market. While interest rates have ticked up a bit from last year, they are still at historically low levels. Just to give younger readers some perspective, when I graduated from college in the 1980’s the interest rate on a 30 year fixed mortgage was over 9%. Needless to say i had to buy a smaller house than I wanted to because of what the interest rate did to my monthly mortgage payment. If you are a young person my advice is to buy now before the rates tick up again, and buy bigger than what you think you need for additional room as your family grows. I had no one to advise me, and after I bought my first home my wife became pregnant and the house I just bought was already to small. Thus we had to go through the process all again, this time finding a bigger home until number 4 came along and then that home was too small as well! Set your sights on a 4 bedroom, 2 or 3 bath home and you should be okay. As always, feel free to call me Richard Kemper at 813-777-5332 with any of your real estate questions.
Average rate on 30-year mortgage at 4.22%
Mortgage Rate Trend Index
Half the experts (50%) polled this week by Bankrate.com expect little rate change over the short term. However, only 8% foresee an increase; the remaining 42% predict additional decreases.
WASHINGTON (AP) – Nov. 22, 2013 – Average U.S. rates on fixed mortgages declined this week after two weeks of increases, keeping home buying affordable.
Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan fell to 4.22 percent from to 4.35 percent last week. The average on the 15-year fixed mortgage dipped to 3.27 percent from 3.35 percent.
Rates had spiked over the summer and reached a two-year high in July on speculation that the Federal Reserve would slow its bond purchases later this year. But the Fed held off in September and now appears poised to wait at least a few more months to see how the economy performs. The bond purchases are intended to keep long-term interest rates low.
Mortgage rates tend to follow the yield on the 10-year Treasury note. They have stabilized since September and remain low by historical standards.
Still, mortgage rates are nearly a full percentage point higher than in the spring. The uptick has contributed to a slowdown in home sales. The National Association of Realtors said sales of existing homes fell 3.2 percent in October, the second straight monthly decline.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for a 30-year mortgage was unchanged at 0.7 point. The fee for a 15-year loan also was steady at 0.7 point.
The average rate on a one-year adjustable-rate mortgage held at 2.61 percent. The fee was unchanged at 0.4 point.
The average rate on a five-year adjustable mortgage fell to 2.95 percent from 3.01 percent. The fee rose to 0.5 point from 0.4 point.
Copyright © 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.