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50 Year lows on Mortgage Rates now

2011-08-18T16:28:51Z

Rate on 30-year mortgage falls to lowest on record

August 18th, 2011 @ 9:08am

WASHINGTON (AP) - The average rate on a 30-year fixed mortgage has fallen to its lowest level on records dating to 1971.

The rate on the most popular mortgage dipped to 4.15 percent from 4.32 percent a week ago, Freddie Mac said Thursday. Its previous low of 4.17 percent was reached in November.

The last time long-term rates were lower was in the 1950s, when 30-year loans weren't widely available. Most long-term home loans lasted 20 or 25 years.

Few expect even record-low rates to energize the depressed home market. Over the past year, the average rate on the 30-year fixed mortgage has been below 5 percent for all but two weeks. Yet prices and sales remain unhealthy and are holding back the overall economy.

Five years ago, the average 30-year fixed rate was near 6.5 percent. In 2000, it exceeded 8 percent.

Most homeowners are paying rates more than a full percentage point higher than the current average. The average rate on all outstanding mortgages is 5.3 percent, Freddie Mac said, citing data from the Bureau of Economic Analysis.

After previous recessions, housing accounted for 15 percent to 20 percent of overall economic growth. This time, in 2009 and 2010, housing contributed just 4 percent to the economy.

Many would-be buyers can't take advantage of the low rates. The unemployment rate is 9.1 percent, few Americans are getting raises and many are struggling to shrink their debt loads.

Banks are also insisting on higher credit scores and larger down payments for first-time buyers. Many repeat buyers have too little equity invested in their homes to qualify for loans. Others are too nervous about the economy or their job security to invest in a home.

The average rate on a 15-year fixed mortgage, which is popular for refinancing, fell to 3.36 percent, also a record low. It's the third straight week of record lows for the popular refinancing option. Freddie Mac's records date to 1991, but analysts believe the new low on the 15-year mortgage is the lowest ever.

Borrowers who qualify have rushed to refinance and take advantage of the low rates. Refinancing accounted for 70 percent of mortgage applications in the first half of the year, Freddie Mac said. Refinancings tend to provide less benefit to the economy than home purchases do.

Mortgage rates typically track the yield on the 10-year Treasury note. Economic fears have drawn investors to the safety of Treasurys, driving down the yield on the 10-year note to barely above 2 percent. That helped lower mortgage rates.

The Federal Reserve offered a dim outlook of the economy last week, saying it expects growth will stay weak for two more years. As a result, the Fed said it expects to keep short-term rates near zero through mid-2013.

Roughly 14 million Americans remain unemployed. And the economy isn't creating enough jobs to rapidly trim that figure. The economy grew at an annual rate of just 0.8 percent in the first six months of this year, the slowest such pace since the recession officially ended more than two years ago. In June, consumers cut spending for the first time in 20 months.

Fewer Americans bought previously occupied homes in July for the third time in four months, the National Association of Realtors said Thursday in a separate report. It said sales fell 3.5 percent last month to a seasonally adjusted annual rate of 4.67 million homes. That's far below the 6 million that economists say must be sold to sustain a healthy housing market.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.

The average rate on a five-year adjustable-rate mortgage fell to 3.08 percent, its lowest level on records dating to January 2005. Last week's reading of 3.13 percent also was a record low. The week before was, too.

The average for one-year adjustable-rate loans fell to 2.86 percent, the lowest on records going back to 1984. Last week's average of 2.89 also set a record.

The rates do not include extra fees known as points. One point is equal to 1 percent of the total loan amount.

http://www.ksl.com/?nid=153&sid=6251308

Mortgage Rates are at 30 Year lows.

2011-08-11T19:03:25Z

Mortgage rates for 30-year loans in the U.S. declined to a nine-month low as concern grew that the nation’s economy is slowing.

The average rate for a 30-year fixed loan dropped to 4.32 percent in the week ended today from 4.39 percent, according to Freddie Mac. The average 15-year fixed-loan rate fell to 3.5 percent, the lowest on record, from 3.54 percent, the McLean, Virginia-based mortgage-finance company said in a statement.

Borrowing costs are declining as the U.S. economic recovery shows signs of faltering. Federal Reserve policy makers pledged Aug. 9 to keep interest rates at record lows through mid-2013 to bolster an economy that was growing “considerably slower” than they previously projected. The yield on the 10-year Treasury note, a guide for consumer loans including mortgage rates, hit an all-time low after the Fed’s announcement.

“The economy is going to remain weak for quite some time,” Paul Dales, senior U.S. economist at Toronto-based Capital Economics, said in a telephone interview. “You have to look at the impact on confidence. The big issue is the inability or unwillingness of people to borrow or buy a home.”

The rate for a 30-year fixed mortgage is the lowest since the week ended Nov. 11, when it was 4.17 percent, the lowest in Freddie Mac records dating to 1971.
Sluggish Market

Low borrowing costs have done little to stimulate home sales as banks tighten lending standards, unemployment sticks above 9 percent and a glut of foreclosures drags down prices. In the second quarter, home values declined in almost three-fourths of 150 U.S. metropolitan areas measured, the National Association of Realtors said yesterday.

U.S. mortgage applications surged last week, led by the biggest gain in refinancing in more than two years, according to the Mortgage Bankers Association. The group’s refinancing index jumped 30 percent in the period ended July 22 from the prior week. The purchasing gauge declined 0.9 percent.

“We’re going to look back in five years and see these historically low rates,” Doug Lebda, chief executive officer of Tree.com Inc. in Charlotte, North Carolina, said in a phone interview. “People are going to wish they jumped in.”

To contact the reporter on this story: Ashwin Seshagiri in New York at aseshagiri@bloomberg.net

Foreclosures in Utah County

2011-07-15T02:57:23Z

Today I was read that Utah was 4th in the nation for foreclosures. What a terrible statistic. The cool think is you can zoom down to see what counties and what cities in what county. Here is Utah County's Break down. Great Stats to look at when looking for a deal on a foreclosure, it looks like Lehi may be your best bet.

Provo Housing Grant Money.

2011-05-09T22:55:00Z

There is plenty of money for Provo Utah Home buyers. These home buyers are getting $20,000 towards their mortgage for purchasing a home.

The Provo Mortgage program is geared at getting owner occupants back into older neighborhoods. This redevelopment area covers the Maeser, Franklin, Dixon, South Joaquin, Timp and a portion of North Park Neighborhoods.

First let’s talk about the some of the qualifications:
You can purchase a single family home (legal accessory apts are ok), one half of a twin home or townhome.
You must be below the income limits for the Provo Grant.
You must be able to secure a first mortgage.

It can take up to 4 weeks to process the Home Purchase Plus grant. It is encouraged that you be ready before you submit an offer on a home. You should also check out the Loan in Provo program to see if you qualify.

Finding out what grants are available can be tricky. You can see if you qualify for a Utah Home Grant . If you have questions or you want to see if you qualify it is easy to contact me.

Thank you,
Dave Teasdale
Associate Broker, AHS, e-Pro
Team Teasdale Realty

Dave@TeamTeasdale.com
www.TeamTeasdale.com
801-798-9911 | Office
801-602-4887 | Cell
801-794-1579 | Desk Fax
801-852-1383 |Team Fax

Elk Ridge update.

2011-05-09T22:54:00Z

We Closed on the Elk Ridge home for $375,000 what a great price. $45,000 off asking price.

Elk Ridge Update

2011-03-18T04:39:00Z

Well, we have been waiting almost a week for an appraisal on the Elk Ridge home, How annoying. I cannot wait to see what price they come up with, my guess will be exactly what we have it under-contract for like most of my appraisals as of late.

Right now we are increasing our inventory of homes for sale, so if you or someone you know is looking to sell, there are still options in this market to sell your home. Give me a call today.

Dave Teasdale 801-798-9911

Appraisal Issues for my Spanish Fork Homes.

2011-03-08T18:42:00Z

I listed this home for $229,900 and it is a great home. Kitchen in the basement fully finished 5 bedrooms 3 bathrooms amazing landscaping. Outdoor kitchen, it was a great house. We went under contract at $215,000 which was way below what I felt like the property was worth. The sellers were motivated and were willing to drop the price to sell quickly to take advantage of their next home.

The buyers ordered the appraisal and I could not believe this home appraised at $199,000. What a joke. The buyers had to come in with cash above the appraised value just to close on this home.

When I looked closer at the appraisal the appraiser used 2 short sales and 1 foreclosure. How is that a fair appraisal. He said he put most of his value behind the foreclosure, which I don't think he even noticed was a foreclosure. I argued what a terrible job this was and was told well, if its on the MLS then they can use the comparables.

When I looked back 6 months for comparables the majority of sales were foreclosures and shortsales. This is a direct result of the tax credit that ended in April of last year. When you look at our statistics of sold homes you will notice there was a HUGE drop in sales in June.

So what is happening, is, right now our market is starting to heat up and do better, when the appraiser has to go back and look at sold comps its only garbage distressed homes. So homes that are selling are selling for short sale and foreclosure prices. You can see how high January's numbers are and I believe its just going to get stronger and stronger as we move towards this summer.

Thankyou,
Dave Teasdale
Associate Broker, AHS, e-Pro
Team Teasdale Realty

Dave@TeamTeasdale.com
www.TeamTeasdale.com
801-798-9911 | Office
801-602-4887 | Cell
801-794-1579 | Desk Fax

801-852-1383 |Team Fax

Elk Ridge Home Under-Contract.

2011-03-05T01:58:00Z

I just put this home in Elk Ridge Utah, under-contract.

This home is a foreclosure that was listed at $415,000

We were able to get the price down alot. Its 6267 Sq.ft 9 Bedrooms. What a great price. Once we close, I will tell you what my buyers were able to buy it for.

I am finding these awesome deals are going fast. Most foreclosures and short sales are selling within 2-3 weeks.

To find your own foreclosure today, click here.

Thank you,
Dave Teasdale
Associate Broker, AHS, e-Pro
Team Teasdale Realty

Dave@TeamTeasdale.com
www.TeamTeasdale.com
801-798-9911 | Office
801-602-4887 | Cell

Welcome

2011-03-03T19:20:06Z

Welcome to my blog. Please check back soon for new entries.