Mortgage Rates Hit All Time Lows

Wednesday, October 17, 2012

MORTGAGE RATES HIT ALL TIME LOWS

Average rates on fixed mortgages in Roseville fell to a fresh record low for the third straight week, mortgage company Freddie Mac, said Thursday.

Freddie Mac quoted that home loan rates on the 30-year loan dropped to 3.36 percent, down from last week’s rate of 3.40 percent, which is the lowest since 30-year term mortgages began in Roseville in the 1950s.

The average on the 15-year fixed rate conventional mortgage, a popular home loan refinance option, dropped to 2.69 percent, down from last week’s record low of 2.73 percent.

Mortgage rates are on the decline after the Federal Reserve began buying mortgage bonds to contribute to the strengthening of a housing recovery that started earlier this year. This program is in collaboration with the Federal Housing Administration, a federal agency that insures FHA mortgages. The Fed plans to continue the program until there is significant improvement in the job market.

Sales are up from last year of both previously occupied and newly built homes. Home prices in the Roseville housing market have been consistently rising. Home builders are much more confident in the housing market and have been kick-starting development projects in Roseville, which means there will be more new home loans to offer.

Lower home loan rates have been driving Roseville home owners to refinance. Mortgage applications have spiked 16.6 percent in the last week, the Mortgage Bankers Association reported Wednesday. Of those home loan applications, 83 percent of those applications were existing loan refinances.

Some economists still question whether this consistent decline in home loan rates will make much of a difference in Roseville. The average rate on the conventional 30-year fixed mortgage has been below 4 percent since early December. However, Roseville home sales remain below healthy levels. Most people who qualify have already taken advantage of the lower rates, especially for VA loans, FHA loans, and USDA loans.

Many people who would like to buy or refinance a home cannot because they fail to meet the new and stricter lending requirements or lack the cash to make a down payment. However, should such a situation arise, there are mortgage options that feature no money down.