Residential financing rates maintain yearly lows
Posted on Thursday, August 28, 2014 at 10:24:20 AM
The low point for residential financing rates this year was hit earlier in August, and a recent report from Freddie Mac shows that that positive trend has continued.
According to the government-sponsored enterprise, the 30-year fixed-rate mortgage averaged 4.10 percent for the week ending Aug. 28, the same as it was during the prior seven-day period. At the same time in 2013, the rate was at 4.51 percent. On the other hand, the 15-year FRM ticked up slightly, from 3.23 percent to 3.25 percent.
"Mortgage rates were little changed following mixed housing news," explained Frank Nothaft, vice president and chief economist at Freddie Mac. "Existing home sales rose for the fourth consecutive month to an annualized pace of 5.15 million, the highest of the year. On the other hand, new home sales fell for the third consecutive month to an annualized rate of 412,000 units."
Even while residential financing rates are low, potential homebuyers and current owners can still benefit from preparing for the expensive costs of mortgages. According to Bankrate, it can be smart to look into each option - fixed-rate, adjustable-rate or hybrid - to determine which one works best. Each has pros and cons, and any that include a rate that can change has more risk. However, the initial rate is often quite low.