Rates for the week ending Nov. 15, 2012 are as follows:
30-year FRM averaged 3.34 percent, down from last week's average of 3.40 percent. One year ago, the average for a 30-year FRM was 4.00 percent.
15-year FRM averaged 2.65 percent, down from last week when it averaged 2.69 percent. At this time last year, the 15-year FRM averaged 3.31 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.74 percent, up from last week's average of 2.73 percent. A year ago at this time, the 5-year ARM averaged 2.97 percent.
1-year Treasury-indexed ARM averaged 2.55 percent this week, down from last week when it averaged 2.59 percent. At this time last year, the 1-year ARM averaged 2.98 percent.
While this looks great at first glance, the reasons for these continueing low rates are not. Bonds and mortgages go to these low rates because of the amount of fear in the marketplace. These assets are historically the safest and investors flock to them. Of course, the other strange thing about these low rates is that banks are slow to grant new mortgages to most people. With the fiscal cliff on the horizon, it is possible that the economy goes back into a recession.
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Always Looking to Acquire Houses | Always Looking to Amaze Investors
From a MoneyWatch Story:
Rates for the week ending Nov. 15, 2012 are as follows:
30-year FRM averaged 3.34 percent, down from last week's average of 3.40 percent. One year ago, the average for a 30-year FRM was 4.00 percent.
15-year FRM averaged 2.65 percent, down from last week when it averaged 2.69 percent. At this time last year, the 15-year FRM averaged 3.31 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.74 percent, up from last week's average of 2.73 percent. A year ago at this time, the 5-year ARM averaged 2.97 percent.
1-year Treasury-indexed ARM averaged 2.55 percent this week, down from last week when it averaged 2.59 percent. At this time last year, the 1-year ARM averaged 2.98 percent.
While this looks great at first glance, the reasons for these continueing low rates are not. Bonds and mortgages go to these low rates because of the amount of fear in the marketplace. These assets are historically the safest and investors flock to them. Of course, the other strange thing about these low rates is that banks are slow to grant new mortgages to most people. With the fiscal cliff on the horizon, it is possible that the economy goes back into a recession.
Always Looking to Acquire Houses | Always Looking to Amaze Investors