30-year fixed mortgage rate falls

Thursday, March 12, 2009 AP Report: The average rate on a 30-year fixed mortgage slipped to $5.03 percent this week from 5.15 percent last week. A year ago, the 30-year fixed-rate mortgage averaged 6.13 percent.  “Mortgage rates had room to ease this week following news of a weaker jobs market, which may slow consumer spending and keep inflation at bay,” said Frank Nothaft, Freddie Mac’s chief economist.

FSBO.com predicts the bottom in housing sales will be in the 4th quarter, 2009, as last minute buyers take advantage of the    1.tax credit expiring 12/31/09  2.low interest rates  3.depressed housing prices

2010 will see a return of 6% mortgage rates, higher home prices and reduced inventory.   

 

14 Responses to “30-year fixed mortgage rate falls”

  1. Imee Says:

    So this is indeed the right time to invest in a home, seeing as the prediction for next year says that homes will get higher priced homes again, correct? I got to get a move on in fixing my credit and looking for a home then!

  2. Mike Says:

    Todays headline: February existing home sales rise by 5.1 percent
    Experts say:
    “If January was a disaster for housing, February may be the rebound month,” wrote Joel Naroff, president of Naroff Economic Advisors.

    The sales figures don’t yet reflect the new $8,000 tax credit designed to lure even more first-time buyers into the market. That should juice up early summer sales, but how much will depend on the overall condition of the U.S. economy.

    “If the economy stabilizes around midyear and financial conditions improve, then sales will probably begin to slowly increase as buyers step back into the market,” wrote JPMorgan Chase analyst Abiel Reinhart. “An important reason for this is that affordability has already increased sharply, both as a result of lower prices and lower mortgage rates.”

  3. Jonathan Weber Says:

    As far as the credit crunch goes, as long as interest rates continue to drop, it will be a good time for a FSBO to get their property exposed and out to market. There are more buyers in today’s market than there have been in the last 15 years…and this trend will continue for the next couple years, experts state.

    I would highly recommend getting some free content and advice before launching your marketing efforts as a FSBO. Sites like How To FSBO will give you some good ideas before you go out and do it yourself!

  4. credit fixing information Says:

    credit fixing information…

    There’ s no getting around the fact that Geithner is a financial industry representative planted in the White House to do Wall Street’ s bidding. Institutional bias precludes him from doing his job. That said, the first step in any financial rescue…

  5. Sean Patrick Says:

    Credit rates should continue to fall in the next 6 months or so - or at the very least, remain stable. Let’s hope it stays this way as we’ll have some nice buyer momentum!

    On a side note, please come check out a new FSBO real estate forum that has just opened up - feel free to post comments and receive help and advice from other people selling their own home!

  6. Sean Patrick Says:

    Sorry for the broken link above - real estate forum

  7. Mike Says:

    WATCH OUT!! Just when you think you have your interest rate locked in
    for your buyer or to refi, the ‘lock in’ period expires. Right now mortgage companies are back logged with applications and are pushing out the time frame to get approved and closed. Citi Group & Bank America are hiring third parties to handle the massive increase in mortgages they are purchasing. BB&T is taking two weeks longer than in January and are only
    extending lock in periods for two weeks. YOU MUST STAY ON TOP OF YOUR MORTGAGE COMPANY!!!

  8. How to Get Six Pack Fast Says:

    I noticed that this is not the first time you mention this topic. Why have you decided to write about it again?

  9. Mike, FSBO.com Says:

    I consider the mortage interest rate to be the most important factor, after picking out your home. Purchasing a home is not just an emotional decision, but also a financial decision. What does this property really cost you over the 5, 10 or 20 years you own it. It is not just the purchase price plus closing costs, but also the total interest paid over the ownership period.

  10. Sell My Own Home Says:

    Let’s hope this trend continues. I am seeing LOTS of buyer activity and if the rates continue to drop, we’ll have more and more buyers in the funnel, making it a great time to perhaps get your property out to market!

    Thanks for the nice write-up.

  11. Mike Says:

    When treasuries values fall, interest rates go up. Today, May 22 (according to Bloomberg) — Treasuries fell, pushing 10-year notes to their biggest weekly loss since June 2008, as investors prepared for the U.S. government to resume debt sales after a two-week hiatus.

    Ten-year yields rose above 3.4 percent for the first time since November amid concern the record supply of Treasuries to pay for a mounting budget deficit may jeopardize the U.S.’s AAA credit rating. Longer-maturity notes and bonds led the declines, sending yields on 10-year securities to 2.56 percentage points above those on two-year notes, the most since November

  12. Paul Taylor Says:

    Another good article on you blog! I always come back for me. Thanks.

  13. S.THOMPSON Says:

    Hey, very nice blog!! I will bookmark your blog and take the feeds also…

  14. Andrey Says:

    There is nothing like returning to a place that remains unchanged to find the ways in which you yourself have altered.

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