Posts Tagged ‘home mortgage rate update’

30-Year Rates Stay Below 4%

Tuesday, March 27th, 2012

While Mortgage rates have inched up a bit in the last week or so, they are historically staying low according to a recent positive report released by Freddie Mac.  Freddie Mac’s chief economist Frank Nothaft is quoted as saying, “An upbeat employment report for February caused U.S. Treasury bond yields to increase over the week, and mortgage rates followed. Job growth over the last six months was the strongest since 2006.” For 15 consecutive weeks, 30-year rates, the most popular choice among home buyers, have averaged below 4 percent.

The following is a closer look at rates for the week ending March 22:

  • 30-year fixed-rate mortgages: averaged 4.08 percent, with an average 0.8 point, inching up from last week’s 3.92 percent average.  A year ago at this time, 30-year rates averaged 4.76 percent.
  • 15-year fixed-rate mortgages: averaged 3.30 percent, with an average 0.8 point, climbing from last week’s 3.30 percent average. Last year at this time, 15-year rates averaged 3.97 percent.
  • 5-year adjustable-rate mortgages: averaged 2.96 percent, with an average 0.7 point, also slightly up from last week’s 2.83 percent average. Last year, 5-year ARMs averaged 3.57 percent at this time of year.
  • 1-year ARMs: averaged 2.84 percent, with an average 0.6 point, rising from last week’s  2.79 percent average. Last year, 1-year ARMs averaged 3.17 percent.

While these rates are still pretty low, there is a pattern of rates inching up each week. If you want to buy, now is the time or you could be facing higher rates sooner that you think. Home prices in Southwest Florida are even more affordable  with these mortgage rates, but with rates rising slowly, now is the time to take full advantage of buying your home in Southwest Florida.

To find an agent who understands the Southwest Florida market, click HERE.

To search for real estate in Naples, Bonita Springs, Estero or Marco Island, Florida, click HERE.

John R. Wood Realtors – The Symbol of Local Knowledge.

source: FreddieMac

Naples, Florida Real Estate: Now is the time to take advantage of mortgage rates

Tuesday, January 31st, 2012

Last week, according to an article found on CNNMoney, “rates on both the 30-year and 15-year fixed loans fell to new records, at 3.89 percent and 3.16 percent, respectively, according to Freddie Mac.”  The question remains: how long will prospective buyers enjoy such low rates?

Potential buyers sitting on the fence waiting for the rates to go lower may be getting their reason to act: a recent action by Congress may be pushing those rates higher shortly. According to CNNMoney, “to pay for the extension of payroll tax cuts, Congress mandated an increase in fees for Fannie Mae and Freddie Mac loans. That could mean an increase in upfront costs for borrowers of about half a point, starting April 1. The new fee would add $500 for every $100,000 in principal.” Instead of an additional upfront fee, borrowers could pay the fee as a higher interest rate, [adding] an additional one-eighth of a point to their rate. That amount might seem inconsequential, but when added to a $250,000 mortgage, the mortgagee could be paying approximately $225 more per year.

With a market filled with desirable listings, interest rates at historic lows, and a threat of rising rates, prospective buyers would benefit from getting off the fence and jumping into the present day ‘buyers’ market.

So, what are you waiting for? Click HERE to find a John R. Wood Agent today!

Click HERE to search for homes for sale in Naples, Estero, and Bonita Springs, Florida!

Federal Reserve will soon start publishing rate forecast

Friday, January 6th, 2012

According to the New York Times, the Federal Reserve will start to publish a forecast four times a year that includes predictions about the direction of short-term interest rates. This reporting will begin on January 25, 2012.  The report will include a summary of how long the Federal Reserve expects to keep short-term rates at current levels.

“More guidance on rates might help lower long-term yields further — in effect providing a kind of stimulus,” reported the Associated Press in a related article. “Lower rates could lead consumers and businesses to borrow and spend more. The economy would likely benefit.”

This move is predicted to provide greater insight into its methodology and decision-making. 

Since 2008, the Federal Reserve has left its key short-term rate at record lows near zero. This past summer the Fed announced it intended to leave the rate low until at least mid-2013. 

To search for homes in Naples, Bonita Springs and Estero, Florida, click HERE!

John R. Wood Realtors – The Symbol for Local Knowledge



Source: “Fed to Publish a Forecast of Rate Moves, Guiding Investors,” The New York Times (Jan. 3, 2012) and “Fed to Regularly Forecast Interest-Rate Changes,” Associated Press (Jan. 3, 2012)

Naples, Fl Real Estate – Mortgage rates dropped again.

Monday, November 7th, 2011

As reported by Freddie Mac in its most recent weekly mortgage market survey,  the 30-year fixed-rate mortgage, the most popular choice among home buyers, dropped to its second lowest reading on record this week. 

“Market concerns over the European debt market drew investors to U.S. Treasury securities, lowering bond yields and mortgage rates,” says Frank Nothaft, chief economist at Freddie Mac.

Here are how rates fared for the week:

  • 30-year fixed-rate mortgages: averaged 4 percent, with an average 0.7 point, down from last week’s 4.10 percent average. The 30-year fixed-rate mortgage is the second lowest on record, just behind the 3.94 percent record reached on Oct. 6. A year ago at this time, 30-year rates averaged 4.24 percent. 
  • 15-year fixed-rate mortgages: averaged 3.31 percent, with an average 0.7 point, falling from last week’s 3.38 percent average. Last year at this time, 15-year mortgages averaged 3.63 percent. 
  • 5-year adjustable-rate mortgages: averaged 2.96 percent this week, with an average 0.6 point, dropping from last week’s 3.08 percent. At this time last year, 5-year ARMs averaged 3.39 percent.
  • 1-year ARMs: averaged 2.88 percent this week, with an average 0.6 point, dropping from last week’s 2.90 percent average. A year ago at this time, the 1-year ARM averaged 3.26 percent. 

Source: Freddie Mac

Whether you’re looking to buy with cash or with financing, now is the time to find your perfect home in Southwest Florida. To find real estate for sale in Naples, Bonita Springs and Estero, FL, click HERE!

John R. Wood Realtors – The Symbol of Local Knowledge.

Where Are Interest Rates Headed This Week?

Tuesday, March 1st, 2011

In addition to the markets monitoring the unrest in the Middle East, this is a big week for economic reports, with the big news coming on Friday!

The big topic of the week will be employment. First up is the ADP National Employment Report on Wednesday, which measures non-farm private employment, followed by another round of Initial Jobless Claims on Thursday.

The busy week culminates with the highly anticipated monthly Jobs Report on Friday. This report features new data regarding job growth and the unemployment rate. Needless to say, this report can be a big market mover.

If you have customers sitting on the fence thinking about purchasing or past customers wondering about refinancing a home, this is a great time to get started.

Visit Element Funding, John R. Wood’s mortgage partner, to find out more.

Where Are Interest Rates Headed This Week?

Tuesday, February 22nd, 2011

The Federal Reserve’s plan is taking shape. In early November, when home loan rates were at an all-time low, the Fed announced its plan to purchase $600 billion in treasuries through mid-2011. This initiative was named Quantitative Easing 2 or QE2. The Fed had three goals:

Boost stock prices
Lower unemployment
Create inflation

After just two and a half months, an argument could easily be made that the Fed has been somewhat successful so far. Stocks are higher, the unemployment rate has improved (though more improvement is certainly needed), and inflation has ticked higher.

So what does all of this mean for home loan rates? Inflation is the arch enemy of bonds and home loan rates and usually any hints of inflation cause both to worsen. Long-term mortgage interest rates moving higher since early November is evidence of this.

During the remainder of this week, the Consumer Confidence/Sentiment Reports, New and Existing Home Sales, Jobless Claims and Gross Domestic Product will be released. If the Fed wants to create inflation as one of its three-fold goals for QE2, it will likely succeed, and bond and home loan rates will likely worsen over time as a result.

For more information about mortgage rates, or if you have questions about purchasing or refinancing a home, visit

Courtesy of Element Funding, John R. Wood Realtors’ mortgage partner