An old friend in the mortgage business, Neal Davis, sent the following information, and I thought that I would share with you.
30-year mortgage rates dip below 5 percent
First time in four months, average rate on standard fixed is 4.94 percent
Rates on 30-year home loans dropped below 5 percent for the first time in four months, but still remained above this year’s record low, Freddie Mac said Thursday. The average rate on a 30-year fixed mortgage was 4.94 percent, down from 5.04 percent last week, Freddie Mac said. The last time the 30-year home loan averaged less than 5 percent was the week ending May 28, when it was 4.91 percent.
Rates hit a record low of 4.78 percent hit in the spring, and remain appealing for people interested in buying a home or refinancing. On Thursday, the National Association of Realtors said the number of signed sales contracts rose for the seventh straight month in August, as homebuyers rushed to take advantage of a tax credit for first-time owners that expires in November. “Low mortgage rates are helping to stabilize home sales, said Frank Nothaft, Freddie Mac’s chief economist.
But borrowers may want to consider the Federal Reserve’s announcement last week that it is slowing down a program intended to lower mortgage rates and boost the housing market. Analysts say mortgage rates should remain low for now but could eventually move higher, and homeowners who want to refinance mortgages shouldn’t delay.
The average rate on a 15-year fixed mortgage fell to 4.36 percent from 4.46 percent last week, according to Freddie Mac. This week’s rate on 15-year mortgages was the lowest since Freddie Mac started tracking it in 1991.
Neal L. Davis
Mortgage Direct
7500 San Felipe, Suite 500
Houston, Texas 77063
Office: 713-784-0777
Fax: 713-784-5223
Direct: 713-860-0710
Cell: 713-858-1726
Email: ndavis@home-mortgages.com
Website: www.home-mortgages.com/neal_home.asp
