January 26, 2010
Washington — The Federal Housing Finance Agency today reported that the average interest rate on conventional 30-year, fixed-rate, mortgage loans of $417,000 or less decreased 4 basis points to 5.05 percent in December. The average interest rate on 15- year, fixed-rate loans of $417,000 or less decreased 9 basis points to 4.54 percent in December. These rates are calculated from the FHFA’s Monthly Interest Rate Survey of purchase-money mortgages. These results reflect loans closed during the December 24-31 period. Typically, the interest rate is determined 30 to 45 days before the loan is closed. Thus, the reported rates depict market conditions prevailing in mid- to late November.
The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 4.92 percent in December, down 8 basis points from 5.00 percent in November. The effective interest rate, which reflects the amortization of initial fees and charges, was 5.01 percent in December, down 8 basis points from 5.09 percent in November. [http://www.fhfa.gov/webfiles/15378/January%20MIRS%20Jan%202010%20final.pdf]
Now is the time to take advantage of the current real estate market and prevailing interest rates. In addition, there’s the tax credit that will expire the first of May. You need to act now. Contact me via www.JustCallPowers.com
June 16, 2009
Below are the recommended rates for each town, based on their recommended budgets (News & Observer, 6/15/09):
The amount is the tax rate per $100 of property value.
- Apex — 34 cents
- Cary — 33 cents
- Fuquay Varina — 52 cents
- Garner — 49 cents
- Holly Springs — 41.5 cents
- Knightdale — 40 cents
- Morrisville — 36.65 cents
- Rolesville — 42 cents
- Wake Forest — 51 cents
- Wendell — 49 cents
- Zebulon — 50 cents
If you need help buying or selling a home in this area, please visit — JustCallPowers.com
February 10, 2008
This is one the best explanations of what determines current mortgage interest rates that I’ve read in quite some time, and I thought you’d like to read it, too. It was written by Brendan Medlin at SunTrust Mortgage –
Okay, the Federal Reserve has cut their Funds Rate by 125 basis points this year alone, so why aren’t mortgage rates continuing to drop as well? Because the interest rates on fixed rate mortgages aren’t related to the Fed Funds rates at all, and therefore aren’t directly affected by any change the Fed makes. Fixed mortgage rates actually follow the bond market, specifically the yield on the benchmark 10 year Treasury note. What has actually happened each of the last four times the Fed has lowered their Funds rate is that mortgage interest rates have risen in response. There are two main reasons for this:
- The Fed action of lowering rates is intended to spark borrowing and purchasing by consumers, the engine of our economy. This leads to exuberance in the equities markets, causing money to flow from bonds into equities. When bond prices fall the yield rises, and so do mortgage rates.
- Increased borrowing and purchasing by consumers tends to lead to inflation. Inflation is the enemy of bond investors as it erodes the value of the long-term investment. Bond investors sell, bond prices fall, the yield rises and so do mortgage interest rates.
Although the rate on the conventional 30 year fixed rate mortgage rose this week, ending at about 5.5% (and the 5 year ARM is about 4.625%), that is still a terrific rate zone for your buyers! It remains a wonderful time to buy, build or refinance a home in the Carolinas!
And a little word from me –
If you are considering the purchase or sale of property in and around Raleigh, North Carolina, please visit JustCallPowers.com.
