Fixed-mortgage Rate

Fixed-mortgage Rate, Fixed rate mortgages are once again priced near record lows, following increases the week ending February 24th, 2012, reveals ForTheBestRate.com, a consumer focused mortgage rate research website. Mortgage rates as low as 3.875% (APR: 3.875%, Points: 0, Fees: $0, Lender: Seckel Capital, LLC) were advertised on the site for a 30 year fixed California mortgage loan on Friday, March 2nd, 2012. Fifteen year fixed pricing is also near the historical low point with rates posted on ForTheBestRate.com as low as 3.125% (APR: 3.214%, Points: 0, Fees: $1230, Lender: Crestline Funding.)

The drop in mortgage rates was also noted in the weekly rate survey released Thursday, March 1st, 2012 by Freddie Mac, a government sponsored enterprise that purchases mortgage loans on the secondary market. The survey showed 30 year fixed mortgage rates fell to an average of 3.90% (0.8 points) after averaging 3.95% (0.8 points) the week before. 15 year pricing also dropped, moving from an average of 3.19% (0.8 points) to one of 3.17% (0.8 points.) 5 year adjustable rate mortgage prices moved slightly higher, with the average rates across the country rising to 2.83% (0.7 points) after reaching 2.80% (0.7 points) one week earlier.

“We continue to see homeowners taking advantage of these historically low mortgage rates with refinance loans,” said Shaun Hamman, VP of Residential Lending at American Financial Resources, a National mortgage lender. “Even a relatively small reduction in rate can often mean a lower monthly payment or make it possible to pay off a loan sooner. For those who are able to consolidate higher interest rate debt or move to a shorter term loan the benefits can be even greater.”

30 Year Fixed Mortgage Rates

30 Year Fixed Mortgage Rates, Mortgage rates in the U.S. declined as more Americans sought financing for home purchases.  The average rate for a 30-year (NMCMFUS) fixed loan fell to 3.9 percent in the week ended today from 3.95 percent, Freddie Mac (FMCC) said in a statement.

 The rate dropped to 3.87 percent earlier last month, the lowest in Freddie Mac records dating to 1971. The average 15-year (NMCM15US) rate decreased to 3.17 percent from 3.19 percent, according to the McLean, Virginia-based mortgage- finance company.

Mortgage applications for house purchases jumped 8.2 percent in the period ended Feb. 24, the most in six weeks, according to a Mortgage Bankers Association index. The Washington-based group’s refinancing gauge fell 2.2 percent. While housing demand is improving, sales have been restrained by tight credit and a jobless rate holding above 8 percent.

“Affordability has increased dramatically as a result of the decline in house prices and historically low interest rates on conventional mortgages,” Federal Reserve Chairman Ben S. Bernanke said yesterday in testimony to the House Financial Services Committee in Washington. “Unfortunately, many potential buyers lacked the down payment and credit history required to qualify for loans. Others are reluctant to buy a house now because of concerns about their income, employment prospects and the future path of house prices.”

Sales (ETSLTOTL) of previously owned homes rose 4.3 percent in January from the previous month, the National Association of Realtors reported Feb. 22. Foreclosures and other distressed properties, which made up the largest share of all purchases since April, have been depressing prices.

The S&P/Case-Shiller index of home values in 20 cities fell 4 percent in December from a year earlier, after decreasing 3.9 percent in November, a report from the group showed Feb. 28.

Current Mortgage Rates

Current Mortgage Rates, Mortgage application volume across the US was down last week, according to the latest report from the Mortgage Bankers Association (MBA). The Market Composite Index – which is the measure for mortgage loan application volume – decreased 0.3 percent on a seasonally adjusted basis for the week ending February 24, 2012 compared to a week before. On an unadjusted basis the said index declined 9.4 percent compared to the previous week.

Refinance mortgage activity also dropped last week from the previous 80.1 percent it had before to 77.9 percent. The decline of refinance applications possibly reflects to the situation that many financial analysts forecasted recently, saying that most borrowers who are qualified for the very best mortgage rates out there, already took advantage of them. Actually, this is the first time since December 2, 2011 that refinance applications dropped under 80 percent from total applications.

Applications for adjustable rate mortgage loans also decreased last week. Now they have a share of 5.0 percent out of all mortgage loan applications.