Mortgage Rate Hits All-Time Low

 

Seasonally adjusted Purchase Index increased 0.3 percent from one week earlier. The unadjusted Purchase Index decreased 0.3 percent compared with the previous week and was 34.1 percent lower than the same week one year ago. The four week moving average is up 1.8 percent for the seasonally adjusted Purchase Index.
Courtesy of Mortgage News Daily

The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.57 percent from 4.6 percent, with points decreasing to 0.89 from 0.93 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.  This was the lowest 30-year contract rate ever recorded in the survey. The effective rate also decreased from last week.

This sounds like good news for consumers, but the reality is that banks have been hit hard by the housing industry crisis and have become ultra-conservative about lending practices. Fewer homes will be sold, ultimately affecting the landscape industry.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.95 percent from 4.03 percent, with points increasing to 1.08 from 1.01 (including the origination fee) for 80 percent LTV loans. This was the lowest 15-year contract rate ever recorded in the survey. The effective rate also decreased from last week.

 The average contract interest rate for one-year ARMs decreased to 7 percent from 7.1 percent, with points increasing to 0.22 from 0.21 (including the origination fee) for 80 percent LTV loans.  The adjustable-rate mortgage share of activity increased to 5.9 percent from 5.4 percent of total applications from the previous week.

- Courtesy of Mortgage News Daily