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US Mortgage Rates Still at Record Lows – How to Take Advantage

 

January 9, 2013  |  Loan-America.com Insights

 

A recap from 2012

Over the last quarter of 2012, we shared exciting news about the US mortgage rates were hovering near record lows in nearly a century, strongly favouring prospective new buyers or consumers wishing to re-finance their existing mortgages.

 In early October, we followed up with reports of unorthodox policies being pursued by the US Federal Reserve (Fed) of “quantitative easing”, whereby the central bank would purchase $85 billion in bonds per month through the rest of the year, and then $40 billion per month indefinitely to help stimulate the economy, and support lending, borrowing and spending by driving interests rates as low as possible until evidence arose to show the economy required less support.

 We argued that these reports suggested that interest rates could remain relatively low for the long-run, and would significantly benefit consumers by increasing their  purchasing power. 

 We also warned consumers that securing financing in the future could be more difficult since government support would not be indefinite since it was heavily policy/politics dependent.

 

The New Year Brings New Market Lows

Earlier this week, The Associated Press broke news that the average U.S. rates on fixed mortgages have once again moved closer to record lows experienced in late 2012, where the average rate on a 30-year loan slipped to 3.34% from 3.35%, 30-year fixed mortgage rate averaged 3.66% and 15-year fixed mortgage ticked down to 2.64% from 2.65 percent, making home buying more affordable and helping sustain a housing recovery.

Already, these record-low interest rates have begun attracting new buyers and persuading many homeowners to refinance their existing mortgages. According to the Mortgage Bankers Association, U.S. mortgage refinancing applications have risen substantially as rates declined. 

However, tightened credit restrictions are barring some borrowers from filing loan applications and taking advantage of these rates.

 

How to Take Advantage of these Rates and How We Can Help

In light of this news, Loan-America would like to remind clients that were here to help you take advantage of these unprecedented and favorable conditions. We strongly encourage consumers to take advantage of the low rates by trying to get into the market or re-financing their existing mortgages at a lower fixed rates as soon as possible. Specifically, for help with securing low interest rate mortgages in the California region or other guidance about the right products for home buyers, please call 1-888-LOAN-800 to arrange a consultation or visit us at http://www.loan-america.com/. We’re a trustworthy Californian mortgage company helping ever day consumers refinance their mortgages and make smarter real estate decisions. We look forward to helping you in 2013! 

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US Mortgage Rates at All Time Low – Great News for Consumers

September 14, 2012  |  Loan-America.com Insights

In today’s US real estate market, mortgage rates are hovering near record lows, some claiming these to be the lowest in nearly a century, which bode well for prospective new buyers or re-mortgaging consumers.[1] 

The mortgage rates for the week ending Sept.13, 2012 include the following:

-  30-year FRM averaged 3.55 percent this week, unchanged from last week. Last year at this time, the 30-year FRM average was 4.09 percent.[2]

-  15-year FRM this week averaged 2.85 percent, down slightly from last week's average of 2.86 percent. One year ago, the 15-year FRM averaged 3.30 percent. [3]

Mortgage Rates 30 year

Factors contributing to keeping US Treasury bond yields low and, in turn, interest rates at unprecedentedly low levels include turmoil in world economy, investor concern with the European debt and bond markets, and a shaky economic recovery back in the US.

In addition, just yesterday, the Fed announced a new policy – “quantitative easing” – meant to stimulate the economy through a round of bond purchases targeting the mortgage market. This entails the central bank purchasing $85 billion in bonds per month through the rest of the year, and then $40 billion per month indefinitely until the economy requires less support.[4] The policy is intended to continue driving interests rates even lower to help support lending, borrowing and spending.[5] The Fed also supported their policy with strong language claiming they would extend plans to maintain interest rates at ultra-low levels through into mid 2015, and continue supporting the economy “for a considerable time after the economic recovery strengthens.”[6]

What does this mean for consumers and prospective buyers? Well, consumers should look to take advantage of the low rates by getting into the market or re-mortgaging their current deal to lock in at a lower fixed rate as soon as possible.

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