Mortgage Rates Drop to 2011 Lows

The average 30 yr mortgage rate fell to 4.61% from 4.63% on Thursday. This is the lowest level since mid-December.

Additionally, the average rate on the 15 year fixed mortgage hit its lowest point since late November. The 15 yr fixed mortgage rate dropped to 3.8% from 3.82%.

These drops seem to be spurring refinancing among homeowners. Many borrowers are taking advantage of these low rates by either moving into a lower rate mortgage or reducing their term.

This is an opportune moment for many homeowners. We suggest speaking with a mortgage professional to see if these rates can benefit you based on your situation.

Home Sales Up Despite Mortgage Rates

Recently, I read an article on CNN Money about new home sales rising despite mortgage rates increasing. This CNN Money article is a perfect example of how the so called educated and government officials do not have a grasp on what is really occurring in the market.

Borrowers trying to refinance or obtain a new mortgage for a purchase have been so for the past three months. Banks and lenders have been over burdened and understaffed to handle the amount of requests from the low rates. It's taking many banks to fund loans requests 3 months after originally submitted the loan.

Many banks and lenders have gone as far as trying to make it more difficult to submit files. I have seen banks and lenders send files back for items that never were an issue previously. It's a way to alleviate the log jam without saying, "sorry clients, we're just to busy to handle your loan".

More incredibly, these banks and lenders are not extending rate locks. They know they are unable to handle their present business and client rate locks are expiring even though they have been trying to either refinance or obtain a new mortgage for months. Banks are well aware of this issue and yet they still refuse to offer extended rate locks.

If you have been trying to get a mortgage this year than you know this problem too well. I'm sorry for homeowners that have been unable to benefit from these low rates because their bank didn't properly staff.

I would like to hear your thoughts on this.

Mortgage Rates Climb Again

The average 30 year mortgage set a new six month high climbing to 4.84% from 4.66% this past week. Expect rates to continue to rise in the short term. However, with the Fed's recent announcement of continuing to purchase treasuries we may see some relief as things settle down. Although, we think rates may fall, we still think that your better off locking in now as opposed to waiting. Rates are still relatively low compared to historic numbers. If refinancing saves you money than take the sure thing. There is no reason to gamble with your finances.

Mortgage Rates Surge

Mortgage rates increased to a 5 month high. The average 30yr fixed mortgage rate from 4.46% to 4.61%. The sell off in treasury bonds seems to be fueling the rise in interest rates. Although rates are at a 5 month high, they are still relatively low compared to historic rates.

Mortgage Applications

Mortgage applications fell for the 4th straight week. Applications dipped .09%. With investors moving their money to safer options such as treasuries, yields are being pushed up. Mortgage rates tend to track treasuries yields so rates have moved up as well.

Refinance applications were down 1.4%. Purchase applications rose 1.8% last week. Refinance applications represent a greater percentage of the total mortgage applications which is why overall applications were down.

Mortgage Rates Climb

November 18th mortgage rates climb to their highest since August. The 30yr mortgage rate increased from 4.17% last week to 4.39%. Borrowers considering refinancing should speak with thier mortgage broker to calculate any potential savings.

Mortgage Rates Tic Up

Mortgage rates have moved up for the first time in five weeks. According to Freddie Mac's weekly survey 30 year mortgage rates edged up to 4.21% from 4.19%. Average rates on 15 year mortgage rate also rose from 3.62% to 3.64%. Homeowners interested in refinancing and home buyers interested in obtaining a mortgage should pay close attention to rates. Expect rates to eventually climb and normalize.