Gross domestic product numbers surprised everyone today, posting a much larger-than-expected increase and confirming the notion that the economy has finally turned the corner, |
[It] has continued to creep up over time in reaction to the Fed's moves, ... The difference between the 30-year FRM and the 1-year ARM is only about 1-1/4 percent, the narrowest it has been since March of 1999, making the 30-year FRM more attractive. |
2002 was and amazing year in the housing sector. The annual average for the 30-year fixed-rate mortgage rate this year was about 6.5 percent, the lowest annual average in more than 31 years. That was the primary factor that led to an incredible amount of home building, home sales, and refinancing, all of which helped keep the economy from another recession. |
A 5/1 hybrid ARM provides the consumer the comfort of knowing that the interest rate will be fixed over the first five years of the loan. However, the interest rate may jump as much as five percentage points on the fifth anniversary. |
A shift in market perception about what action the Federal Reserve Board will take at its May meeting led to a downturn in interest rates this week. Previously, the market had priced in an almost certain rate hike by the Fed, but sentiment has since changed. Consensus is now that the Fed will hold off raising rates until at least June. |
A tepid national economy has anchored mortgages rates to current low levels so far this year, ... However, according to the Federal Reserve's 'Beige book,' the housing industry is the only bright spot in the economy right now. That is primarily due to low mortgage rates. |
A tepid national economy has anchored mortgages rates to current low levels so far this year. However, according to the Federal Reserve's 'Beige book,' the housing industry is the only bright spot in the economy right now. That is primarily due to low mortgage rates. |
According to the Mortgage Bankers Association, purchase applications hit a record high last week, and this can be directly attributed to continuing low mortgage rates. |
Additional economic indicators this week confirmed that June was a weak month for the nation as a whole. Consequently, the upward pressure on interest rates eased, allowing mortgage rates to return to earlier, lower levels. |
Additionally, applications for home purchase were the highest ever recorded last week, according to the Mortgage Bankers Association, which also reported that refinancing activity reached almost 50 percent of applications over the same period. The housing industry continues to amaze us. |
Additionally, the Federal Reserve Board appears to be on target in quelling any future surges in inflation. |
Adjustable-rate mortgages (ARMs) were more strongly affected by the latest Federal Reserve rate hike this week. However, mortgage rates continue to be extremely affordable and the outlook for the housing sector appears bright. |
All eyes will be on the Fed for the next few months at least. How aggressive or how measured the coming rate hikes are will determine the future direction of both short- and long-term mortgage rates. |
all indications are that mortgage rates will continue to be very affordable in the coming year. |
Along with May's housing numbers, the newly released higher-than-expected leading economic indicators also point to a strong third quarter for housing, |