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Mortgage Rates Remain Near Historic Lows to Begin November
|Many economists were surprised when the average rate for 30-year fixed-rate mortgages reached a new record low in October, but reports continue to note rates are lingering near these low levels despite predictions of higher rates before 2013.
Monday, November 19th, 2012
Many economists were surprised when the average rate for 30-year fixed-rate mortgages reached a new record low in October, but reports continue to note rates are lingering near these low levels despite predictions of higher rates before 2013.
Data from Freddie Mac's Primary Mortgage Market Survey for the week ending November 8 reveals the average rate for 30-year fixed rate mortgages was 3.4 percent, up slightly from the previous week when it reached 3.39 percent. The slight increase may indicate a new trend. However, the average it still significantly lower than from this time last year, when it was 3.99 percent.
In addition, the average rate for 15-year FRMs was 2.69 percent, a modest decline from the week before. A year ago, the average rate was 3.3 percent, as current rates continue to provide quality conditions for buyers.
The average rate for 5-year adjustable-rate mortgages also posted a slight drop, falling to 2.73 percent from 2.74 percent. Average rates are nearing figures posted this time in 2011, when the average rates for a 5-year adjustable-rate mortgage was 2.98 percent.
While many housing market factors, including mortgage rates, can be heavily influenced by happenings in the economy, fall and winter are infamously slower months for real estate activity. Likewise, the economy continues to rely on the health of the housing market to help boost the overall economy.
"Mortgage rates remained near record low following the employment report for October," said Frank Nothaft, vice president and chief economist of Freddie Mac. "The economy added 171,000 jobs, above the market consensus forecast, and the two prior months were revised up a combined 84,000. The Labor Department also reported that the unemployment rate ticked up to 7.9 percent and that average hourly wages were unchanged."
As rates remain at affordable levels home prices are also growing nationwide. According to the National Association of Realtors, home prices increased in more than 80 percent of metro areas reported by the group.
National real estate trends have a major impact on the real estate market on a daily basis. Keeping up-to-date on the latest news and notes posted by GL Homes can make sure those looking for South Florida homes know exactly how the current market will affect them.