Mortgage rates remain low on economic worries
By Palm Beach Business.com
DELRAY BEACH — The same forces clobbering the stock market are collaborating to keep mortgage rates in check. Weekly surveys from Freddie Mac and Bankrate released Thursday show rates continuing to hover just above historic lows.
Palm Beach Business.com’s South Florida Survey shows a similar trend.
Freddie Mac’s Primary Mortgage Market Survey found the 30-year fixed-rate mortgage averaging 4.97 percent with an average 0.7, down from last week’s 5.01 percent. The 15-year FRM this week averaged 4.34 percent with an average 0.6 point, down from last week when it averaged 4.40 percent. A year ago at this time, the 15-year FRM averaged 4.81 percent.
Bankrate.com’s weekly national survey put the 30-year at 5.15 percent with 0.44 point, same as a week ago. The 15-year averages 4.52 percent with 0.44 point.
"Interest rates on 30-year fixed-rate mortgages are below 5 percent for a third week this year, which helps a number of homeowners to refinance their existing housing debt," Freddie Mac Chief Economist Frank Nothaft said. "In mid-June of last year, for example, 30-year fixed-mortgage rates topped nearly 5.6 percent. Currently, the monthly payments would be almost $77 per month lower on a $200,000 loan balance.”
Economic and financial market jitters continue to hold mortgage rates in check, with little movement in recent weeks, according to analysis from Bankrate. The average 30-year has barely budged over the past month and has settled at 5.15 percent in three of the past four weeks. Should worries about Greece and other European markets abate, both Treasury yields and mortgage rates will rebound somewhat.
Bankrate’s panel of mortgage experts see rates likely to remain in their current holding pattern over the next week. More than half of the panelists, 53 percent, expect mortgage rates to remain more or less unchanged, while 40 percent predict an increase. Only 7 percent forecast a decline.
Links to Surveyed Banks:
