Disappointing earnings help sink mortgage rates once more
DELRAY BEACH — Mortgage rates continue to hang near historic lows, falling for a third consecutive week, according to national surveys by Freddie Mac and Bankrate.com.
Most banks that serve the Delray Beach/South Florida market followed the trend, according to the Palm Beach Business.com’s weekly survey.
Freddie Mac’s Primary Mortgage Market Survey found the 30-year fixed-rate mortgage averaging 4.99 percent with an average 0.7 point, down from last week’s 5.06 percent.
Bankrate put the 30-year at 5.15 percent wiith an average of 0.45 discount and origination points, down from 5.23 percent a week earlier.
Bankrate cited disappointing corporate earnings reports last week as a catalyst for the lowering mortgage rates.
"Fixed mortgage rates followed bond yields lower for the third consecutive week, pushing 30-year mortgages below 5 percent once more," said Frank Nothaft, Freddie Mac vice president and chief economist. "Similarly, ARM rates eased along with shorter-term rates, as the federal funds futures market indicates no increase in the Federal Reserve's target rate following its upcoming committee meeting on January 26th and 27th.”
Bankrate noted that the last time mortgage rates were above 6 percent was November 2008, when the average rate was 6.33 percent. A $200,000 loan at that time would have carried a monthly payment of $1,241.86. With the average rate now 5.15 percent, the monthly payment for the same size loan would be $1,092.05, a savings of nearly $150 per month for a homeowner refinancing now.
Bankrate's panel of mortgage experts expect rates to stay put over the next 30 to 45 days; 60 percent of the panelists see little, if any movement during that time. Twenty-seven percent see rates rising, while 13 percent forecast a decline.
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