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Mortgage Rates Remain Near Record Lows, Affordability Still High
|As housing market reports continue to report industry factors are improving, many prospective buyers are urged to buy while affordability is still high.
Thursday, August 16th, 2012
As housing market reports continue to report industry factors are improving, many prospective buyers are urged to buy while affordability is still high.
Freddie Mac's Primary Mortgage Market Survey reveals fixed mortgage rates inched higher for the second week in a row for the week ending August 9. While prospective buyers may view higher mortgage rates as a negative, the increase reflects a stabilizing national housing market. Rate remained significantly lower than this time last year, when the average rate for 30-year fixed rate mortgages was well over 4 percent and the average for 15-year FRMS was 3.5.
Data shows the 30-year FRM rate averaged 3.59 percent, up from the previous week when it reached 3.55 percent after 14 consecutive weeks of declines. This time last year, the average FRM rate was 4.32 percent, indicating homebuying is still more affordable despite the mild increases in rates.
Additionally, the average rate for 15-year FRMs was 2.84 percent, an increase from the week before when it averaged 2.83 percent. A year ago, it averaged 3.5 percent.
Freddie Mac also notes the 5-year adjustable-rate mortgage average rose, reaching 2.77 percent from 2.75 percent from the previous week. This time last year, the average rate for 5-year ARMs was 3.13 percent.
While those looking to purchase a home may be hesitant to purchase as both home prices and mortgage rates are on the rise, it will likely take time for them to reach levels before the housing market slump. Being approved for a mortgage loan is also expected to become easier soon, as lending standards are predicted to loosen by 2013.
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.