After rising for the past two weeks, mortgage rates dropped a bit this week. According to Freddie Mac, the benchmark 30 year fixed rate dropped from 5.72% last week to 5.66%. This translates to a $9.50 per month savings on a $250,000 loan. A year ago, this rate averaged 5.86%, and it hit the a 40 year low last June at 5.21%. (These rates are nationwide averages, and carried an average of cost of .7 points. If you need a loan in Florida, contact me at Info@ezhomefree.com for a loan well below the national average with no points.)
David Lereah, the chief economist for the National Association of Realtors, believes rates will climb slowly this year to about 6.5% for a 30 year fixed loan in the forth quarter. Compared to this weeks rate, that will add $135.50 each month to a $250,000 loan.
Information from Planet Realtor was used in this report.
Dan Hoffman
What's Your Home Worth?
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1 - Marbelle
The Real Estate Market in Cyberspace
Freddie Mac's weekly rate report showed that the long-term mortgages have reached the highest since June 2002. The 30-year fixed rate mortgage average reached 6.59% this week compared to last week's 6.58%. The one-year average for adjustable rate mortgages is now 5.67%. This is higher than last year's average.
Mortgage rates have increased for 6 consecutive weeks. It showed a consistent trend based on Freddie Mac's economic forecast. Frank Nothaft, chief economist of Freddie Mac, reported that mortgage rates would continue to increase over the coming year.
By M. Sese
Real Estate Press