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Mortgage rates fall to low not seen yet this year

Posted by:  Chip Poli
2014-05-09 13:57:28

For some time now, every rise and fall in mortgage rates have grabbed headlines in the real estate sector because of how much of a role they seem to play in mortgage origination these days. With rates having been slowly but steadily rising for about a year now, any significant drop is bound to bring a potential improvement in the market as a whole.

This week, the average rate for a 30-year fixed-rate home loan fell to 4.21 percent, down from 4.29 percent just seven days earlier, according to the latest Primary Mortgage Market Survey from the government-sponsored mortgage-backing enterprise Freddie Mac. While that's still up from the 3.42 percent observed during the same week a year earlier, it is notable for being the lowest rate observed since Nov. 7 of last year.

Along similar lines, 15-year fixed-rate mortgages likewise saw rates take a plunge, as they fell to 3.32 percent from the previous 3.38 percent, the report said. However, as with their 30-year counterparts, rates for this type of loan remained well above the levels seen a year prior, when they averaged just 2.61 percent.

Why the change?
Frank Nothaft, the vice president and chief economist for Freddie Mac, noted that the reason for these rate improvements might just be that, in general, economic data was a bit of a mixed bag in recent weeks, the report said. For instance, the economy added more jobs in April (288,000) than it had during any month since January 2012, dropping the unemployment rate to just 6.3 percent across the country (this also followed upward revisions for data from the previous two months, which tacked on an additional 36,000 jobs to the total). At the same time, though, yields on 10-year Treasury bonds dropped because of negative data for GDP growth.

Consumers who are in the market to buy a home or refinance an existing mortgages will be able to research rates on the Poli Mortgage Group's website, 24 hours a day and seven days a week, without having to provide any personal information at all. When it comes time for them to make their decision, they will also be able to speak directly with a Loan Officer, all they'll have to do is simply fill out a Contact Us form on the website or call 866-353-7654, and a representative will get back to them shortly.

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