Mortgage
rates dipped for the second consecutive week, with the most popular loans
falling to their lowest marks since late November.
The 30-year fixed-rate average sank for the fourth consecutive week and is
now at 4.39 percent, a decline of 0.02 percentage point week-over-week,
according to the latest survey
from mortgage buyer Freddie Mac. The popular loan averaged 4.53 percent at the
start of 2014 and was at 3.53 percent a year ago.
The 15-year fixed-rate average also declined, falling to 3.44 percent from
3.45 percent. It has fallen in each of the last three weeks and is now at its
lowest point since the last week of November. A year ago, the 15-year rate
averaged 2.81 percent — a difference of .63 percentage point year-over-year.
Averages for hybrid adjustable rate mortgages were mixed. Previously at 3.1
percent, the five-year ARM increased by 0.05 percentage point to 3.15 percent
this week. After holding steady at 2.56 percent for one month, the one-year ARM
saw a slight dip this week, falling 0.02 percentage point to 2.54 percent.
“Mortgage rates were flat to down a little this week amid reports that
inflation remains subdued,” Frank Nothaft, Freddie vice president and chief
economist, said in a statement. “The Consumer Price Index was up 0.3 percent in
December after being unchanged in November. For the year as a whole, consumer
prices rose just 1.5 percent in 2013.”
Mortgage rates had been rising steadily in December after the Federal Reserve
announced it would begin to curb its bond-buying stimulus program in January.
The bond-purchase program has helped offset dramatic gains in real estate prices
and kept affordability elevated while the market has stabilized.
While home sales have slowed since the Fed’s announcement, the rebounding
housing market continues to show signs of recovery. As the recovery progresses,
key rates are expected to see a significant rise. In the short-term, however,
rates are expected to hold steady.
In the latest Mortgage
Rate Trend Index by Bankrate.com, the majority of loan experts polled
believe that rates will remain relatively unchanged over the next week.
“If the Fed announces a continued tapering at next week’s meeting, that gives
a vote of confidence in the economy that will eventually push mortgage rates
higher,” opined Greg McBride, senior financial analyst for Bankrate.com. “But
it’s wait-and-see mode in the meantime.”
Excerpted from original article found here.
Rahul and Smitha Ramchandani are a licensed real estate
Broker-Salesperson/Sales Representative Team with Keller Williams in New Jersey.
They are Buyer Specialists and Home Marketing Experts. You can reach Rahul and
Smitha and their team online at: http://www.Morris-Homes.com, http://www.SRRealEstateGroup.com
and http://www.TheTownhouseExpert.com
Their team specialize in North Central New Jersey including towns such as Boonton, Chatham, Madison,Chester,Convent Station, Denville, East Hanover, Florham Park, Hanover, Harding Twp., Mendham, Montville, Morristown,Morris Plains,Morris Twp., Mountain Lakes, Parsippany, Randolph, Rockaway, Whippany.
