Home mortgage rates remain near record lows, according to two weekly surveys. Freddie Mac’s Primary Mortgage Market Survey (PMMS) and Bankrate.com’s weekly national survey both show fixed mortgage rates declining or remaining the same from the previous week amid mixed economic data.
“Mortgage rates were little changed over the [Labor Day] holiday week amid mixed economic data releases,â€ said Frank Nothaft, vice president and chief economist, Freddie Mac. â€œAlthough consumer spending rose 0.4 percent in July, representing the largest gain in five months, the core price index was unchanged suggesting little threat of inflation.â€
Freddie Mac shows the 30-year fixed-rate mortgage (FRM) averaged 3.55 percent with an average 0.7 point for the week ending September 6, down from last week when it averaged 3.59 percent. Last year at this time, the 30-year FRM averaged 4.12 percent.
The 15-year FRM this week averaged 2.86 percent with an average 0.6 point, the same as last week. A year ago at this time, the 15-year FRM averaged 3.33 percent. Adjustable rates averaged anywhere from 2.75 to 2.61 percent.
Bankrate found the average 30-year FRM inching down to 3.79 percent and an average 0.4 point origination fee.
The average 15-year fixed mortgage rate bucked the trend and nosed higher to 3.04 percent, while the larger jumbo 30-year mortgage reset a record low of 4.33 percent. Adjustable mortgage rates also reset record lows, with the 5-year and 7-year ARMs falling to 2.76 percent and 2.9 percent, respectively.
Time to buy
Mortgage rates are low because the government hopes to stimulate the slow-moving economy. Lower mortgage rates will boost house purchase and many other investments to speed the economic rebound. Besides, with the weak and uncertain U.S. economy, investors expect to put their money in safe investments. Mortgage is always considered as safe assets. While the demand for mortgage increases, the rate falls.
Some U.S. mortgage buyers who have already got their mortgages strongly suggested the potential home buyers seize the great opportunity to get into a new house. Compared with the houses these homeowners bought 5 years ago, the current new houses with the low mortgage rates may save the home buyers tens of thousands dollars over the lifetime of the loan. Many people believe that right now is the perfect time for home buyers to purchase a new house or upgrade to the next house.
Based on the latest three months mortgage trends, the mortgage rates went up and down irregularly. Some potential home shoppers think that the rate will probably continue to fall while others are concerned that the low mortgage rates might move higher again after seeing the mortgage rates increase for several consecutive weeks last month.
â€œWith todayâ€™s low mortgage rates, it seems like a great time to refinance loans. Yet, without a good understanding of the limitation and rules of the mortgage industry, it is extremely hard to make a wise decision. This is why there are so many mortgage brokers springing up nowadays, who are knowledgeable of the limitation, rules and the available mortgage options,â€ said a home loan specialist at Mortgage Hands. â€œWe will continue to work with home buyers for refinancing or a new propertyâ€, he said.