Initiative to raise the housing market
Obama and the Federal Reserve make plans to keep interest rates low while making it easier for some borrower to refinance. In the State of the Union address, President Obama laid out a blueprint for an America built to last. Claiming that the government cannot fix the housing market on its own, but providing a plan the make a meaningful difference. As part of his initiative to raise the housing market Obama announce that he will make it less expensive for borrower with mortgages backed by the Federal Housing Administration.
www.hsh.com releases its latest Weekly Mortgage Rates Radar showing another dip in fixed mortgage rates from the previous week. The Weekly Mortgage Rates Radar reports the average rates and points offered by lenders for the two most popular types of mortgages, the conforming 30-year fixed-rate mortgage and the conforming 5/1 adjustable-rate mortgage (ARM). With ARM rates moving up from record lows last week, average rates were mixed during the week ending June 19th.
Average mortgage rates and points for conforming residential mortgages for the week ending June 19 were, according to www.hsh.com:
Conforming 30-year fixed-rate mortgage
• Average rate: 3.78 percent
• Average points: 0.30
Conforming 5/1-year adjustable-rate mortgage
• Average rate: 2.83 percent
• Average points: 0.24
Average mortgage rates and points for conforming residential mortgages for the previous week ending June 12 were, according to HSH.com:
Conforming 30-year fixed-rate mortgage
• Average rate: 3.81 percent
• Average points: 0.29
Conforming 5/1-year adjustable-rate mortgage
• Average rate: 2.82 percent
• Average points: 0.24
Mortgage rates begin the summer at or near record-lows, however the Fed’s program of purchasing mortgage-back securities comes to an end in 8 days and it not clear what will come after that. However, the mortgage market remains unsettled, and a case could be made to carry only the mortgage support program for a while longer yet. That would help mortgage rates to remain both low and stable for at least the rest of the summer. Absent the Fed’s steadying influence, mortgage rates might move somewhat higher.
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