15-Year Fixed Rate Mortgages Hit All-Time Low
The average fixed rate on a 15-year mortgage fell nationally to an all-time low of 3.13 percent last week, Freddie Mac reported, while a traditional 30-year mortgage rate dipped to near-record low of 3.88 percent.
30-Year Fixed a Full Percentage Point Lower than 2011
According to Freddie Mac, 30-year fixed-rate mortgages didn’t break new records last week, but the average rate did fall to 3.88 percent from 3.90 percent the previous week. One year ago at this time, 30-year fixed mortgages averaged exactly one percent point higher – 4.88 percent.
Adjustable Rate Mortgages
Adjustable-rate mortgages (ARMs) showed mixed results accoding to Freddie Mac, with 5-year ARMs falling from 2.83 percent to 2.81 percent week-over-week and 1-year ARMs rising slightly from an average of 2.72 percent to 2.73 percent in the same time frame.
One year ago at this time, 5-year ARMs averaged 3.73 percent and 1-year ARMs averaged 3.21 percent.
Buying a home? Refinancing? To take advantage of low interest rates, contact a licensed mortgage loan officer near you to discuss your financing options.
Other Economic News
Bloomberg reports that household spending will get a lift from employment and income rises and partly from the fact that we have just seen 4th warmest winter on record in the 20th century. Why should weather matter? Well, reduced expenditures on energy bills mean more money for other expenses.
Reuters reports that, “The spending power of the American consumer is the secret sauce for turbo-charging a world economy that has entered an uncomfortable soft patch.” No pressure Americans, really.
But in all seriousness, we may be on the way to a rosy recovery as recent reports of new jobs and increasing consumer demand may indicate – but many are still concerned with lagging income growth, lagging consumption, higher prices and persistently high unemployment (still at 8.3%).
We wonder what will come of Federal Open Market Committee’s second scheduled meeting of the year and releases of Retail Sales, Producer Price Index, and Consumer Price Index. Coupled with information already available – these reports and forthcoming news from abroad will undoubtedly have economists on their toes.
Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.