Mortgage Rates Drop Below 4% on 15-Year Loans
Posted on | August 9, 2010 | No Comments
Washington
A plunge in mortgage rates is giving homeowners a rare opportunity to lock in a 15-year fixed-rate loan for less than 4 percent.
Rates haven’t dipped this low in decades. For those who can qualify, it is the chance to pay off a home in half the time while saving tens of thousands of dollars — if not more.
But the lower rates on short-term loans are not likely to ignite the refinancing market. Most people can’t afford the higher monthly payments required by a 15-year fixed mortgage compared with a more traditional 30-year loan.
“That’s not what most people need right now. They need lower payments,” said Leif Thomsen, CEO of Walpole, Mass.-based lender Mortgage Master Inc.
High unemployment, slow job growth and tight credit have hampered the housing industry. And fewer people are also in position to refinance, because low real estate prices have left many with little equity in their homes. Many people who would qualify have already refinanced in the past year.
The average rate on the 15-year fixed loan dropped to 3.95 percent last week, according to mortgage company Freddie Mac. That is the lowest on records the company has kept since 1991. The average rate for a 30-year fixed loan fell to 4.49 percent. Rates haven’t been that low since the 1950s, when longer-term mortgages typically lasted 20 to 25 years.
There might not seem to be a huge difference in the two rates, both of which are historically low. But consider the savings on a $200,000 mortgage over 15 years at the current rates.
A borrower who refinances over that term could expect to save $65,000 in interest compared with the 30-year fixed loan. Still, they would pay $1,474 a month before taxes and insurance. With the 30-year loan, the payments would be $1,010 a month.
Rates on five-year adjustable-rate mortgages averaged 3.63 percent, down from 3.76 percent a week earlier.
Tags: Market News > Mortgage rates > refinance mortgage > Salt Lake Real Estate News
Gorgeous Sandy Remodel!
Posted on | August 2, 2010 | No Comments
Price: $309,900
Type: Single Family
Bedrooms: 4
Bathrooms:1 Full, 2 Partial
Garage:2
Square Feet: 2,986
Gorgeous West Jordan Rambler
Posted on | July 22, 2010 | No Comments
Price: $232,000
Type: Single Family
Bedrooms: 4
Bathrooms: 3 Full
Garage: 2
Square Feet: 2,632
Tags: Great View in Utah > Home prices > Listing Price > Real Estate > Sales Price
Listing prices are on the rise…
Posted on | July 19, 2010 | No Comments
After increasing for the first time in nine months in May, asking prices for active home listings were virtually unchanged in the June reading of the Altos Research 10-city composite price index. In addition, inventory of existing homes for sale increased both in June and for Q210.
The June median listing sales price for single-family existing homes was $477,937 in June, down $146, about 0.03%, below the May 2010 median of $478,083 for homes in Boston, Chicago, Denver, Las Vegas, Los Angeles, Miami, New York, San Diego, San Francisco, and Washington DC.
The 10-city composite median price bottomed out at $470,017 in January 2009. The composite gradually increased to $509,030 in July, before the nine-month-long run of declines. Since the end of March, prices in the 10-city composite at up 0.2%.
Altos Research said 13 of 26 markets it tracks reported increases in asking sales prices for homes during the month of June. For Q210, asking prices were up in 14 markets. San Francisco led both categories with a 2% in June and an increase of 4.4% quarter-over-quarter.
Following San Francisco in asking price increases was San Jose (1.5% in June, 2.5% in Q210), Austin (1%, 1.7%), Dallas (0.9%, 2.2%) and Cleveland (0.8%, 1.5%).
The market with the biggest decrease was Phoenix, down 2.4% from June and 3.9% in Q210, followed by changes in Miami (-2.3%, -4%), Washington DC (-0.8%, 0.4%), Las Vegas (-0.6%, -0.9%) and Boston (-0.5%, 0.1%).
Listing inventory totaled 304,831 properties in the 10-city composite, up 2.8% and 5.4% for the quarter. Chicago was the only market where listing inventory decreased in June, but the area was still up 0.7% for the quarter. While Detroit posted a 1.6% increase in listing inventory during June, it was the only market with a decrease in listing inventory for the quarter, down 2.1%. San Francisco lead all markets in inventory volume, up 7.6% in June and 13.5% for the quarter.
Extended Tax Credit!
Posted on | July 1, 2010 | No Comments
Yesterday, the House pushed through a three month closing extension of the homebuyer tax credit.
Tonight, the Senate unanimously approved the bill — leaving the President to ratify the provision by signing it into law, as early as tomorrow morning.
“I thank my colleagues for joining me to pass this important extension and giving homebuyers in Nevada and around the country the opportunity to purchase their first home,” said Sen Harry Reid (D-NV), in a statement following the bill’s passage.
“In addition to helping thousands of families experience the American dream, this successful and popular program provides a much needed boost to Nevada’s housing market and economy.”
The deadline for the tax credit was midnight tonight but only if the mortgage went through, so with Obama’s signature, it would have been possible that no contracts currently under offer — but unable to close — would fall through the cracks with the extended deadline.
The Senate approved provision will give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000.
If the President signs the bill into law tomorrow, it is unclear if the provision will apply retroactively to deals that close on Thursday, July 1.
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