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Average US 30-year mortgage rate slips to 4.17 percent

30-year mortgage

30-year mortgage rates slips to 4.17%

WASHINGTON/February 9, 2017 (AP)(STLRealEstate.News) — Long-term US mortgage rates eased slightly this week.

Mortgage buyer Freddie Mac said Thursday the rate on 30-year fixed-rate loans slipped to an average 4.17 percent from 4.19 percent last week.  That was still sharply higher than a 30-year rate that averaged 3.65 percent for all of 2016, the lowest level recorded from records going back to 1971.  A year ago, the benchmark rate stood at 3.65 percent.

The average for a 15-year mortgage declined to 3.39 percent from 3.41 percent last week.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and 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 fell this week to 0.4 point from 0.5 point.  The fee on 15-year loans also declined to 0.4 point from 0.5 point.

Rates on adjustable five-year loans eased to 3.21 percent from 3.23 percent.  The fee remained at 0.4 point.

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Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Average US 30-year mortgage rate unchanged at 4.19 percent

Mortgage Rates

WASHINGTON/February 2, 2017 (AP)(STLRealEstate.News) — Long-term US mortgage rates barely budged this week, after marking their first increase of the year last week.

Mortgage buyer Freddie Mac said Thursday the rate on 30-year fixed-rate loans was unchanged from last week at an average 4.19 percent. That was still sharply higher than a 30-year rate that averaged 3.65 percent for all of 2016, the lowest level recorded from records going back to 1971. A year ago, the benchmark rate stood at 3.72 percent.

The average for a 15-year mortgage ticked up to 3.41 percent from 3.40 percent last week.

After meeting this week, Federal Reserve policymakers left the key interest rate unchanged at a time of solid economic gains but also heightened uncertainty surrounding the new Trump administration. At the same time, the Fed pointed to improved sentiment among consumers and businesses.

Many economists think the Fed will put off further rate increases until more is known about President Donald Trump’s ambitious agenda, or whether his drive to cancel or rewrite trade deals will slow growth or unsettle investors.

Mortgage rates surged in the weeks following Trump’s election in early November. Investors in Treasury bonds bid yield rates higher because they believed his plans for tax cuts and higher spending on roads, bridges and airports will drive up economic growth and inflation.

But mortgage rates reversed course in the first week of the year, falling after nine straight weeks of increases.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and 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 rose this week to 0.5 point from 0.4 point. The fee on 15-year loans also increased to 0.5 point from 0.4 point.

Rates on adjustable five-year loans rose to 3.23 percent from 3.20 percent. The fee remained at 0.4 point.

Long-term US mortgage rates steady; 30-year at 4.19 percent

mortgage rates fall - US mortgage rates

US mortgage rates hold steady with 30-year mortgage rates at 4.19%

ST LOUIS, MO/February 2, 2017 (STLRealEstate.News) Long-term US mortgage rates barely budged this week, after marking their first increase of the year last week.

Current avg Last week 52-week high 52-week low
30-year fixed – 4.19 percent – 4.19 percent – 4.32 percent – 3.41 percent
15-year fixed – 3.41 percent – 3.40 percent – 3.55 percent – 2.72 percent
5-year adjustable – 3.23 percent – 3.20 percent – 3.33 percent – 2.68 percent

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Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Long-term US mortgage rates fall; 30-year at 4.09 percent

mortgage rates fall - US mortgage rates

Long-term mortgage rates fall

ST LOUIS, MO/January 20, 2017 (STLRealEstate.News) Mortgage Rates Fall – Long-term US mortgage rates Long-term US mortgage rates marked their third week of declines this week, after snapping a nine-week run of increases.

Current avg – Last week – 52-week high – 52-week low
30-year fixed – 4.09 percent – 4.12 percent – 4.32 percent – 3.41 percent
15-year fixed – 3.34 percent – 3.37 percent – 3.55 percent – 2.72 percent
5-year adjustable – 3.21 percent – 3.23 percent – 3.33 percent – 2.68 percent

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Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Republished with permission by K Amant, LLC d.b.a. STLRealEstate.News

Long-term US mortgage rates fall after 9 weeks of increases

US mortgage rates

Long-term US mortgage rates fall

(AP)(STLRealEstate.News) US Long-term Mortgage Rates – After nine straight weeks of increases, long-term US mortgage rates fell this week.

Current avg – Last week 52 – week high 52 – week low

  • 30-year fixed – 4.20 percent – 4.32 percent – 4.32 percent – 3.41 percent
  • 15-year fixed – 3.44 percent – 3.55 percent – 3.55 percent – 2.72 percent
  • 5-year adjustable – 3.33 percent – 3.30 percent – 3.33 percent – 2.68 percent

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The Associated Press – Publication STLRealEstate.News – AP content is published with permissions through a license agreement effective December 2016.

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Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

US mortgage rates rise to highest level in more than 2 years

US mortgage rates

US mortgage rates rise to a 2 year high

(AP)(STLRealEstate.News) US mortgage rates – Long-term U.S. mortgage rates shot up this week to the highest levels in more than two years. Investors are bidding up rates because they believe the incoming Trump administration will drive inflation and economic growth higher with tax cuts and increased government spending. Long-term mortgage rates have risen eight straight weeks.

Current avg Last week 52-week high 52-week low
30-year fixed – 4.30 percent – 4.16 percent – 4.30 percent – 3.41 percent
15-year fixed – 3.52 percent – 3.37 percent – 3.52 percent – 2.72 percent
5-year adjustable – 3.32 percent – 3.19 percent – 3.32 percent – 2.68 percent

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Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

US mortgage rates continue post-election surge

US mortgage rates - post election surge

US mortgage rates – post election surge

(AP)(STL.News) mortgage rates – Long-term U.S. mortgage rates climbed for the seventh straight week following Donald Trump’s election victory, again marking new highs for the year.

Current avg Last week 52-week high 52-week low

30-year fixed – 4.16 percent – 4.13 percent – 4.16 percent – 3.41 percent
15-year fixed – 3.37 percent – 3.36 percent – 3.37 percent – 2.72 percent
5-year adjust – 3.19 percent – 3.17 percent – 3.19 percent – 2.68 percent

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The Associated Press

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Copyright 2016 The Associated Press.  All rights reserved.  This material may not be published, broadcast, rewritten or redistributed.

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Material not licensed by AP is the sole property of K Amant, LLC.  Copyright 2016 K Amant, LLC d.b.a. STLRealEstate.News.  All rights reserved.  This material may not be published, broadcast, rewritten or redistributed.

Rates surging 5 weeks post-election; will home sales weaken?

Mortgage Rates

Rates surging – will it effect home sales?

WASHINGTON/December 15, 2016 (AP)(STLRealEstate.News) — Mortgage rates are still surging five weeks after Donald Trump’s election victory. Will higher rates weaken prospective buyers’ confidence next year and dampen home sales?

While the job market is stable, the low mortgage rates that helped spur homebuying this year are disappearing in the rearview mirror.

Steadily rising rates would ultimately limit the number of possible buyers and how much they can afford to pay. And existing homeowners who might otherwise be looking for an upgrade could choose to stay put rather than face higher interest costs.

The “unwelcoming reality” of higher mortgage rates likely is tamping down prospective homebuyers’ confidence, says Lawrence Yun, chief economist of the National Association of Realtors.

“Younger households, renters and those living in the costlier West region — where prices have soared in recent months — are the least optimistic about buying,” he said.

A forecast update issued by the Realtors’ group Wednesday found that declining affordability in many parts of the country and the rise of mortgage rates likely will lead to only a small gain in sales of existing homes next year. Existing-home sales are forecast to increase 2 percent, to about 5.52 million.

Still, industry experts say economic fundamentals — like continued job growth and rising homebuying demand from millennials — still look positive for the housing market. Mortgage rates likely will stabilize as the market settles down, some say.

There are economic unknowns, too, as the new Trump administration’s economic policy starts to take shape in the coming months. Constraints on home purchases such as tight credit standards and affordability remain.

In the week ended Thursday, the average rate on the 30-year fixed-rate mortgage rose to 4.16 percent from 4.13 percent the previous week, mortgage company Freddie Mac reported. That compares with 3.57 percent in the week ended Nov. 9, the day Trump clinched the election. A year ago, the benchmark loan rate averaged 3.97 percent.

The average for a 15-year mortgage, a popular choice for people who are refinancing, ticked up to 3.37 percent from 3.36 percent the week before. In the Election Day week, it was 2.88 percent.

The rise in mortgage rates was spurred by a sustained decline in U.S. government bond prices in the days after Trump’s victory. Bond investors looked toward tax cuts and beefed-up spending to upgrade roads, bridges and airports under a Trump administration, which could fuel inflation. That would depress prices of long-term Treasury bonds because inflation would erode their value over time. The selling wave lifted bond yields, which move opposite to prices and influence long-term mortgage rates.

The yield on the 10-year Treasury bond touched its highest level in more than two years and sat at 2.57 percent late Wednesday. It was 1.87 percent on Election Day Nov. 8. The yield rose further to 2.59 percent Thursday.

On Wednesday, the Federal Reserve announced an increase in its benchmark interest rate for the first time in nearly a year.

The climb in mortgage rates has caused fewer consumers to come forward. Applications for mortgage loans fell 4 percent in the week ended Dec. 9 from a week earlier, according to the Mortgage Bankers Association.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and 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 this week at 0.5 point. The fee on 15-year loans also remained at 0.5 point.

Rates on adjustable five-year loans rose to 3.19 percent from 3.17 percent. The fee slipped to 0.4 point from 0.5 point.

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MARCY GORDON, AP Business Writer

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Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

A broad rally drives Dow, S&P 500 indexes to record highs

Financial Markets

NEW YORK (AP)(STLRealEstate.News) — The Dow Jones industrial average and Standard & Poor’s 500 indexes soared to their biggest gains since the presidential election on Wednesday and set all-time highs. Investors bought stocks that do well in times of faster economic growth, like technology and industrial companies, but they also snapped up stocks that pay large dividends.

Stocks moved steadily higher throughout the day after a mixed open. Phone and real estate companies made the largest gains, but the rally moved into high gear in the afternoon, as airlines, railroads and trucking companies soared.

Investors took the rally in transportation stocks as a sign of optimism about economic growth. Technology and consumer-focused companies also jumped. Biotech drug companies took steep losses after President-elect Donald Trump said he wants to reduce drug prices.

The transportation sector reached an all-time high for the first time in two years. Julian Emanuel, an equity strategist for UBS, said investors were pleased to see that record because they see it as a sign businesses will start spending more, which would bolster economic growth.

“The consumer has really been the engine of the economy,” he said. “The missing piece has been the corporate side, the industrial side.”

The Dow Jones industrial average jumped 297.84 points, or 1.5 percent, to 19,549.62. The Standard & Poor’s 500 index rose 29.12 points, or 1.3 percent, to 2,241.35. The Nasdaq composite recovered from an early loss to rise 60.76 points, or 1.1 percent, to 5,393.76. That was about five points short of its all-time high.

The Russell 2000 index of small-company stocks also recovered from an early loss and set its own a record as it gained 11.84 points, or 0.9 percent, to 1,364.51.

U.S. government bond prices rose, sending yields lower. The yield on the 10-year Treasury note fell to 2.34 percent from 2.39 percent. Bond yields have risen sharply since the summer but have slipped in the last few days.

The lower bond yields have helped stocks that are seen as bond substitutes, like real estate investment trusts. Their big dividends are attractive to investors who want income, so when bond yields fall, investors often turn to those stocks. Industrial real estate company Prologis rose $1.62, or 3.2 percent, to $52.32 and Verizon picked up $1.02, or 2 percent, to $51.38.

AT&T also jumped as a Senate antitrust panel scrutinized its planned $85.4 billion purchase of Time Warner, the parent of HBO. Legislators asked if the deal would improve competition and reduce prices for consumers, as the companies say it will. AT&T gained $1.10, or 2.8 percent, to $40.45 and Time Warner edged up 8 cents to $93.98.

A wide array of companies that stand to benefit from faster economic growth also climbed. Home improvement retailer Lowe’s rose $3.94, or 5.4 percent, to $76.40 and truck maker Paccar jumped $3.20, or 5 percent, to $67.63. U.S. Steel added $1.54, or 4.3 percent, to $37.49.

IBM led technology companies higher as it rose $4.44, or 2.8 percent, to $164.79. Hard drive maker Western Digital climbed $5.30, or 8.3 percent, to $69.15 after it extended a patient licensing deal with Samsung.

In an interview with Time magazine, which named him Person of the Year, the president-elect said he wants to reduce drug prices. He did not say how his administration plans to do that. Democratic nominee Hillary Clinton campaigned on reducing drug prices, and drug company stocks had rallied since the election as investors felt that was less likely to happen under Trump.

The Nasdaq biotechnology index tumbled 2.9 percent, as those companies make costly medications and might stand to lose the most under tighter price regulations. Amgen lost $3.92, or 2.7 percent, to $141.19 and Vertex Pharmaceuticals sank $2.80, or 3.6 percent, to $75.32.

Abbott Laboratories moved to terminate its purchase of diagnostic test maker Alere. Abbott agreed to buy Alere in February for about $5.8 billion, or $56 per share. But since then, Alere has recalled a key monitoring device and delayed a financial statement, and it’s being investigated over its overseas business. Alere said Abbott’s lawsuit is without merit.

Alere stock dropped $3.19, or 8 percent, to $36.67 and Abbott stock added 6 cents to $38.48.

Benchmark U.S. crude oil lost $1.16, or 2.3 percent, to $49.77 a barrel in New York. Brent crude, the international standard, slid 93 cents, or 1.7 percent, to $53 a barrel in London. Energy companies traded higher Wednesday, although they rose less than the rest of the market.

European stock indexes jumped as investors anticipated that the European Central Bank will extend its bond-buying stimulus program Thursday. The stimulus is designed to boost growth and inflation. European stock indexes climbed. Germany’s DAX gained 2 percent and the FTSE 100 in Britain rose 1.8 percent. The CAC 40 of France picked up 1.4 percent.

The dollar fell to 113.85 yen from 114.05 yen. The euro rose to $1.0759 from $1.0715.

In other energy trading, wholesale gasoline lost 3 cents to $1.51 per gallon. Heating oil slipped 2 cents to $1.62 a gallon. Natural gas fell 3 cents to $3.60 per 1,000 cubic feet.

Gold rose $7.40 to $1,177.50 an ounce. Silver jumped 47 cents to $17.28 an ounce. Copper dipped 4 cents to $2.64 a pound.

Japan’s benchmark Nikkei 225 rose 0.7 percent and the South Korean Kospi inched up 0.1 percent. The Hang Seng in Hong Kong gained 0.5 percent.

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MARLEY JAY, AP Markets Writer

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AP Markets Writer Marley Jay can be reached at http://twitter.com/MarleyJayAP His work can be found at http://bigstory.ap.org/journalist/marley-jay

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Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

MORTGAGE RATES FALLS AGAIN MATCHING HISTORIC LOW OF 2012

Mortgage Rates Fall Again

Mortgage Rates Fall Again

ST. LOUIS, MO: (STLRealEstate.News) – This past Friday, July 29th, 2016 the national average 30 (thirty) year fixed mortgage rate fell to 3.36% according to Bankrate.com.  This rate duplicates rates from December 2012 creating home-buyers and home-owners looking to refinance existing mortgage rates at some of the lowest rates in history.  Rates have fallen due to falling U.S. Treasury yields caused by the U.K. vote forcing them to leave the European Union.  According to reliable sources, Freddie Mac mortgage gauge is also near the record low of 3.48%, which is watched by the industry.

Recently the real estate industry is promoting a “hot market”.  Sales are up, but are they up as much as they should be considering we are bouncing on the bottom for mortgage rates?  It raises many questions for those that are skeptical on the economy and the current administration.

Only time will tell!  Obviously, things have improved on the economic front, but the rebound is still slow, which is the result of the excess hype by real estate industry.  Any kind of real estate bounce is long overdue for the realtors of our country.

WITH LOW RATES MAKE UPGRADING HOMES AFFORDABLE

Mortgage Rates - Low Rates

Low Rates – time buy or upgrade homes

ST. LOUIS, MO: (STLRealEstate.News) – Low rates: with rates approaching record lows, it is a perfect time to buy a home or upgrade to a bigger home.  Last week rates fell on the 30 year fixed to 3.53% approaching record lows.  Most of the people surveyed think rates will remain unchanged over the upcoming week.  However, as we approach record lows it won’t last forever.  How long rates remain low is anybody’s guess, but common sense will tell you that if you are going to buy or upgrade now is a great time while rates are low.

It is taking on average 45 days to close a mortgage, which is down 1 day from this time a year ago.  What does that suggest?  Who know, but I would assume that loan underwriting is lightening up a bit.  Having said that don’t expect them to ever get a free as they were in the 90’s.  The banks and our government has hopefully learned their lesson.

Realtors can help you find a qualified mortgage broker that will help you get the best rates and lowest closing costs.  Low rates is on your side, but time may not be.  Therefore, you must act now.

MORTGAGE RATES FALL TO A THREE YEAR LOW

MEDIAN HOME

MORTGAGE RATES HIT 3-YEAR LOW

ST. LOUIS, MO: (STLRealEstate.News) – with the recent jobs reports that was more negative than expected mortgage rates fell for the first time in the last three weeks.  This is great for those out trying to buy a home in this busy market.  Better rates should help the market sell more real estate.

“Growing optimism about the state of the economy was quickly erased with May’s employment reports,” say Sean Becketti, Freddie Mac’s chief economist.  “The disappointing release cause an immediate flight to quality resulting in 10-year Treasury yield dropping 10 basis points on Friday.”

With the recent fall rates are the lowest since May 2013.  This doesn’t mean that rates can’t bounce back, but there are many calendar events coming up that will have an impact or mortgage rates.  Will those events move rates lower and higher?  Wouldn’t we all love to know that!

Source: MortgageNewsDaily.com