Rising mortgage rates are slumping after a peak in December, which was the strongest since the 2008 financial crisis hit. Mortgage buyers credit the fall to more mortgage choices for first-time buyers and a boost in lender confidence.
Freddie Mac reported 30-year-mortgages are steady at 3.53 percent and 15 -year mortgages remain low at 2.77 percent, calling people to buy or refinance homes to catapult the recovering housing market and the economy.
The fixed mortgage is near historic lows, and homeowners saved approximately 33 percent on their interest rates resulting from the rate reduction. The Wall Street Journal expects the Federal Reserve to remain buying mortgage securities and keep the rates low.
HSH provides a starter kit for Mortgage Refinancing and if you want to track mortgage statistics at their weekly Fixed-Rate Mortgage Indicator.
"On average, borrowers who refinanced reduced their interest rate by about 1.8 percentage points," said Frank Nothaft, vice president and chief economist at Freddie Mac on The Federal Savings Bank website. "On a $200,000 loan, that translates into saving about $3,600 in interest during the next 12 months."
The inexpensive mortgages are encouraging more and more people to buy homes and refinance. USA Today reported the improved sales are leading to higher home prices and less amount of houses are heading builders to keep constructing-- pushing for a greater improvement in consumer response.
During this time, The Reserve is also encouraging veterans to apply for VA loans, like an Interest Rate Reduction Refinance Loan, which allows the interest rate to be reduced after refinancing an existing home.
There is no appraisal and no out-of-pocket money required for the package, and veterans should see monthly decrease in mortgage payments. According to the Department of Veteran Affairs, the adjustable rate mortgages should be refinanced into a fixed rate.
