Mortgage Rate Steady
The Mortgage Bankers Association reported that mortgage delinquencies jumped in the 3rd quarter for all types of loans, but particularly for subprime ARMs (Adjustable Rate Mortgages) -- with the delinquency rate rising to 4.67% from the 2nd quarter's number, 4.39%. The number of borrowers who took on exotic mortgages to afford pricey homes has been a major concern of economists and housing analysts. But with mortgage rates remaining near the lowest levels of the year, many of those borrowers are jumping into the safety of a fixed-rate loan. The refinancing activity is increasing and, due to this low rate environment, some signs of stability in housing sector are appearing before us.
According to Freddie Mac's weekly survey, the 30-year fixed-rate mortgage averaged 6.12% in the week that ended today -- up a tick from its 6.11% average last week. In 2006, the lowest point for the mortgage was seen on Jan. 19, when it hit 6.1%. The rate was 6.3% one year back. The 15-year fixed rate averaged at 5.86% this week, again a little up from last week's 5.84%. At this time last year this rate was 5.85%.
Rate for 5-year Treasury-indexed hybrid adjustable-rate mortgages (ARM) averaged at 5.92% -- same as in last week. This rate averaged 5.77% a year ago. The 1-year Treasury-indexed ARMs have an average rate of 5.45%, up from last week's rate of 5.43%. At this time in 2005, the 1-year ARM averaged 5.15%.
Labels: mortgage, Real Estate
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