Rates for 30-year fixed mortgages fell to the lowest level of the year last Thursday and near historical all-time lows. Following is a chart of the Freddie Mac Primary Mortgage Market Survey (PMMS) showing last weeks average national rates (June 10, 2010 PMMS Survey) for 30 year and 15- year fixed rates and 5- and 1- year ARM’s, as well as the Southeast Region’s average rates, and compared to the prior weeks rates and those of 1 year ago.
Freddie Mac PMMS Table June 10, 2010
These are rates that show an average for a certain period – Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates can fluctuate significantly, even within a given day.
These average rates are also based on pristine, prime borrowers single family detached homes, primary residence, 20% down, excellent income stability, and perfect credit with a FICO score of at least 740, and a clean, uncomplicated file. Again, these rates are approximate based on a certain date and actual rates a borrower receives will depend on their personal situation. There are different rates for condominiums, second homes and investment property, foreign buyers, down payment percentages, plus add-ons for other specific loan criteria. Areas of the country have different rates and all lenders do not offer all programs – mortgage underwriting is no longer cookie-cutter – it’s very customized to a person’s situation.
Fixed mortgage rates tend to track the US Treasury debt these interest rates or yields were pushed down because of the increased money into Treasuries due to the turbulence in Europe, plus, following a relatively weak unemployment report, bond yields fell this week and mortgage rates followed.
Mortgage rates are at attractive levels, but the housing market has experienced a drop in new mortgage and refinance applications – they were 30% below the same week last year according to the Mortgage Bankers Association and that’s probably a sign that the housing market is struggling without a tax credit of up to $8000 for first-time buyers, which expired at the end of April. Naturally whenever there is a deadline, there is a rush to get things done, but there is also usually a pause right after it. In Florida, it’s also the trend to see a slowdown at this time after the winter months which is the height of our season. For more info on the South Florida sales market see our Market Trends page and additional articles in the “Market Trends” category.
If you have any further questions about potential loans you can call me on my cell at 561-866-2927 or contact Noel Livingstone, who is a Senior Loan office at Sunbelt Lending. You can visit him at his personal webpage – and even apply for your loan – at Sunbelt Lending, Sunbelt Lending Noel Livingstone. He can be reached directly on his cell phone at (561) 843-1983 if you have any further questions.
As a side note regarding the tax credit deadlines, just in the last few days, Senate Majority Leader Harry Reid proposed a measure to extend the closing deadline to receive the homebuyer tax credit. The bill would only apply to buyers who signed a contract by April 30, but it would extend the deadline for closing from June 30 until September 30.
NAR states that 180,000 homebuyers who already signed purchase agreements could possibly miss the deadline – especially short-sales, which have more involved and lengthy processes to get transactions closed. It remains to be seen, however, whether the amendment will be approved. It’s part of a controversial jobs and tax bill Tax Extenders Job Bill that may be radically changed before the Senate approves it. Lawmakers are not scheduled to vote on the bill until sometime this week at the earliest. Borrowers should not count on the extension being passed, but proceed based on the current deadline.
For information on the Boca Raton Real Estate Market and South Florida area, please call or text me at 561-866-2927 or send me an email!
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Buyer’s Estimated Closing Costs in Florida Mortgage rates in this example from 2007 were at 6.5%. Compared to the current rate of 4.73% on a $200,000 mortgage, that’s a savings of $220 per month – the difference in the principal and interest portion of the monthly payment at 6.5% ($1257.33) and 4.73% ($1036.80). Mortgage rates can make a substantial difference in your monthly payment or how much loan you can afford.