In spite of the Fed's recent decrease to 2% Fed Funds, rates have responded by going higher. This has to do with increasing inflation, due to rising commodities costs.
Point is that the Fed has little control over the mortgage rate as long as the rate indexes are based on longer term rates. I do believe this will end when the government realizes it will have to be the buyer of last resort for many of these loans. The only other alternative is to let prices find there own bottom, but that is very risky too.
30-year fixed-rate mortgage: Averaged 6.06 percent, up from last week when it averaged 6.03 percent. Last year at this time, the 30-year FRM averaged 6.16 percent.
15-year fixed-rate mortgage: Averaged 5.59 percent with an average 0.5 point, down from last week when it averaged 5.62 percent. A year ago at this time, the 15-year FRM averaged 5.87 percent.
Five-year Treasury: Adjustable-rate mortgages (ARMs) averaged 5.73 percent this week, up from last week when it averaged 5.68 percent. A year ago, the 5-year ARM averaged 5.87 percent.
One-year Treasury-indexed ARMs averaged 5.29 percent this week with an average 0.6 point, unchanged from last week. At this time last year, the 1-year ARM averaged 5.42 percent.
Thanks for Reading
Howard Bell
www.yourpropertypath.com
A web site of over 450 articles related to real estate focused primarily on property management.
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