September 3rd, 2010 | 
Author: Mortgage rates hit decades low of 4.32%
WASHINGTON – Sept. 3, 2010 – Mortgage rates fell to the lowest level in decades for the tenth time in 11 weeks, as investors worried about the economy.
The average rate for a 30-year fixed loan was 4.32 percent this week, down from 4.36 percent last week, mortgage buyer Freddie Mac said Thursday. That’s the lowest since Freddie Mac began tracking rates in 1971.
The average rate on a 15-year fixed loan dropped to 3.83 percent from 3.86 percent the previous week. That’s the lowest on records starting in 1991.
Rates have been falling since spring as investors have shifted money into safer Treasury bonds. That has lowered their yields, which mortgage rates tend to track.
The low rates have fueled a wave of refinancing by borrowers. Refinancing is at its highest level since May 2009 and makes up almost 83 percent of all new loans, its highest share since January 2009.
People seeking lower rates helped boost mortgage applications by 2.7 percent last week, the Mortgage Bankers Association announced Wednesday.
However, the low rates haven’t been enough to lift the struggling housing market. Home sales are at the lowest level in more than a decade. Potential buyers are holding off purchases, worried about jobs and the economy. Some are having trouble meeting tighter lending standards.
To calculate the national average, Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.
Average rates on five-year adjustable-rate mortgages fell to 3.54 percent from 3.56 percent the week before. Rates on one-year adjustable-rate mortgages fell to an average rate of 3.50 percent from 3.52 percent.
The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount. The nationwide fee for loans in Freddie Mac’s survey averaged 0.7 a point for 30-year and 1-year mortgages. They averaged 0.6 of a point for 15-year and 5-year mortgages.
Copyright © 2010 The Associated Press, Daniel Wagner, AP business writer.
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Nice posting on real estate interest rates. They are changing so quickly that buyers and sellers are not sure about WHEN to act on the market. That is what we are seeing in the Dallas market as well, specifically in the Plano real estate market where we are.
Great post on the state of real estate interest rates. We too are experiencing that clients are hestating to get back into Plano real estate for fear of the roller coaster effect of the interest rates and what the Fed might do in the near future
Lender Processing Services Inc.’s stock dropped today for the third straight trading day, as news reports about bottlenecks in the mortgage foreclosure process highlight the company’s role in the process and also highlight allegations of wrongdoing against LPS.Jacksonville-based LPS responded by issuing a statement late on Monday about “mischaracterizations in the media” about the company’s foreclosure services. LPS also said it believes an investigation of wrongdoing at one of its subsidiaries “will not have a material adverse impact on its business or results of operations.”The subsidiary, Alpharetta, Ga.-based Docx LLC, has been accused of falsifying documents used in foreclosure proceedings, and the U.S. Attorney’s office for the Middle District of Florida and the Florida Attorney General’s office are investigating those charges. LPS reiterated Monday that when it learned of problems at Docx, it took action to correct the problems.
nice article, keep the posts coming