In Freddie Mac's results of its Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 4.98 percent with an average 0.6 point for the week ending January 28, 2010, down slightly from the previous week when it averaged 4.99 percent. Last year at this time, the 30-year FRM averaged 5.10 percent.
The 15-year FRM this week averaged 4.39 percent with an average 0.6 point, down slightly from the previous week when it averaged 4.40 percent. A year ago at this time, the 15-year FRM averaged 4.80 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.25 percent this week, with an average 0.6 point, down from the previous week when it averaged 4.27 percent. A year ago, the 5-year ARM averaged 5.27 percent.
The 1-year Treasury-indexed ARM averaged 4.29 percent this week with an average 0.5 point, down from the previous week when it averaged 4.32 percent. At this time last year, the 1-year ARM averaged 4.90 percent.
"Mortgage rates held steady this week ahead of the Federal Reserve's (Fed) policy committee meetings," said Frank Nothaft, Freddie Mac vice president and chief economist. "The Fed announced on January 27th that economic activity has continued to strengthen. It also noted that with substantial resource slack continuing to restrain cost pressures and with longer-term inflation expectations stable, inflation is likely to be subdued for some time.
"Last year was rough on the housing market. The number of new one-family housing starts hit a historical low of just under half-a-million units since records began in 1959. Similarly, new home sales were under 400,000 homes, an all-time record since data compilation began in 1963. Total existing home sales, however, rose to almost 5 million houses, which was the first annual increase in four years."
House Hunters Come Out Early
The springtime spurt in home buying may hit before the snow melts this year as buyers scramble to meet an April 30 tax credit deadline.
The spring buying season typically takes off in March and runs through May. But buyers who want to claim this year’s tax credit—up to $8,000 for first-time buyers and up to $6,500 for repeat buyers -- must have signed purchase contracts by April 30. And they have to complete the deal by June 30.
"I expect the buying season will be moved up," says Vicki Cox Golder, President of the National Association of Reatlors. Sales "are going to take off in February and March and really take off in April. My concern is that the move-up buyer hasn’t thought what they need to do. Their window is really short. They have to coordinate closing dates."
Nearly 11 Million People Now Working from Home
The number of people who worked at home increased by nearly 2 million, from about 9.5 million in 1999 to about 11.3 million in 2005, according to new data released by the U.S. Census Bureau. Nearly half of these home workers had college degrees and nearly half of them earned $75,000 a year or more.
It would seem that with all those people working from home, having a dedicated home office would be a smart move for a renovator. But that’s not the case. According to the 2010 Remodeling Magazine Cost vs. Value report, the average home office costs $28,375 to build and returns $13,648 at resale. That’s a cost vs. value of only 48.1%.
What are the 8% of U.S. workers who work from home doing? About a third worked in professional and related services, while 12% worked in business and repair service. Another 10% worked in finance, insurance, or real estate. The most popular occupations among those who reported working at home were professional (25%), executive, administrative and managerial (22%), and sales (18%). The median monthly earnings of workers who worked at home were about $2,400 in 2005; the median annual family income for these workers was approximately $68,000.
Resolve to Take a Look at Refinancing
If you haven't looked into refinancing your mortgage under federal programs, you could be missing an opportunity to save money, keep your home and give the economy a little juice.
Federal mortgage refinance programs have given more than 2 million homeowners a better shot at holding on and the economy a much needed shot in the arm.
What's more, the year began with fixed interest rates hovering slightly above 5 percent, but still near record lows, according to Erate.com.
First American CoreLogic's "How the U.S. Consumer Has Benefited from Mortgage Finance Programs in 2009," reveals a group of 2.2 million homeowners have saved an average $120 a month on their mortgage payment -- a 10.5 percent reduction from the previous mortgage payment.
The study says the refinance activity will result in $2.3 billion in mortgage payment savings for borrowers who refinanced in the first six months of 2009. Over the next five years, the total benefit to homeowners who refinanced in 2009 will grow to $11.5 billion.
This article was published in Realty Times
Written by: Realty Times Staff
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Monday, February 1, 2010
February Round Up: Mortgage Rates Steady
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