Refinance Mortgage Rates [mortgageloan-processor.blogspot.com]
www.ratesupermarket.ca : RateSupermarket.ca on CBC's The National Discussing the Mortgage Market.
mortgageloan-processor.blogspot.com RateSupermarket.ca on CBC's The National Discussing the Mortgage Market
Mortgage Refinance
Mortgage Rates Rise
Mortgage rates on fixed mortgages have ticked up for the fifth straight week, reflecting higher yields on long-term Treasurys, according to insiders. Freddie Mac, the king of mortgages, said that the the average rate on a 30-year fixed mortgage rose to 4.83 percent from 4.61 percent in the preceding week. Last month (November), the mortgage rate reached a 40-year low of 4.17 percent.
The average rate on the 15-year loan also ever so slight increased to 4.17 percent from 3.96 percent. It reached 3.57 percent in November (last month), the lowest level on records dating back all the way to 1991, if you can believe that. Mortgage rates are on the rise after falling for seven straight months. Investors are slowing moving money out of Treasurys and into stocks, according to insiders.
That's based largely on the speculation and expectation that the tax-cut plan that Congress is apparently all but ready to bless will spur growth and potentially higher inflation. Other fear the bill might actully "spurn" growth, rather than spur growth.Sigh.
What are yields and how to yield work? In essence, these so-called yields tend to rise on fears of higher inflation. Mortgage rates track the yields on what's known as the 10-year Treasury note. The sell-off and run in the 10-year Treasury note is complicating the Federal Reserve's efforts to lower interest rates by buying up $ 600 billion in Treasurys. Truth is, there is nothing "Federal" about the Federal Reserve at all.
Yet some traders had hoped the central bank would boost the scope of its purchases to keep interest rates down.The increase in mortgage rates already is sending chills through the housing market. Refinance activity apparently fell last week for the fifth straight week, while the number of people applying for a mortgage to purchase a home dropped 5 percent from the week before. This again, according to insiders with knowledge. Yet how are mortgage rates calculated today? To calculate average mortgage rates, Freddie Mac collects rates from mortgage lenders across the country on Monday through Wednesday of each and every week. These mortgage rates often fluctuate significantly, even within a single day.
Suggest Refinance Mortgage Rates TopicsQuestion by Just a guy: If national mortgage rates are say...5%, how many points can one be expected to pay in order to get that rate.? none? one? five? By national rates, I mean the average as presented by mortgagenewsdaily.com etc Best answer for If national mortgage rates are say...5%, how many points can one be expected to pay in order to get that rate.?:
Answer by rtfm
That varies by individual bank. For example, my credit union is currently giving 5 percent mortgages with no points. They're giving 4.75 percent with 1 point, 4.5 percent with 2 points. Your bank may differ from that by half a percentage point or more. It also varies according to the type and term of the mortgage (the rates I quoted are for 30-year fixed). You'll have to check around the different banks in your area to get their exact numbers.
Answer by Ed Atun
Probably 1/2 point. Plus you will be charged assorted fee like "Doc Fee" , "Processing Fee", "Application Fee" The banks have all learned that buyers will ask about "points", so they charge fewer points and more "fees". It all costs money if you are a buyer.
Answer by Noneya
it depends on the "deal" and what type of loan you're doing. If you're doing a conventional loan at 90% LTV and have a 740+ mid credit score you can get a 30 year fixed at 4.5% for a cost of 1.125% origination. Take the exact same scenario above but lower the credit score to 700 and the interest rate goes up by .125% (4.625%) at the same cost.
