Home mortgage rates remain at record lows, according to two weekly surveys.
Freddie Mac’s Primary Mortgage Market Survey and Bankrate.com’s weekly national survey both show fixed mortgage rates dropping or remaining the same from the previous week amid mixed economic data.
Frank Nothaft, vice president and chief economist, Freddie Mac, stated, “Mortgage rates were little changed over the holiday week amid mixed economic data releases. Although consumer spending rose 0.4 percent in July, representing the largest gain in five months, the core price index was unchanged suggesting little threat of inflation.”
Freddie Mac shows the 30-year fixed-rate mortgage averaged 3.55 percent with an average 0.7 point for the week ending September 6, decreasing from last week when it averaged 3.59 percent.
The 30-year fixed-rate mortgage averaged 4.12 percent last year at this time.
This week, the 15-year fixed-rate mortgage averaged 2.86 percent with an average 0.6 point, the same as last week.
The 15-year fixed-rate mortgage averaged 3.33 percent a year ago at this time.
Adjustable rates averaged from 2.75 to 2.61 percent.
Bankrate found the average 30-year fixed-rate mortgage slipping to 3.79 percent and an average 0.4 point origination fee.
"The market for new construction is back on track," Patrick Newport, U.S. economist at IHS Global Insight stated.
Permits increased 6.8% in July, reaching an annual rate of 812,000, the best reading the industry has seen since August 2008.
Single-family permits were up 4.5% for an annual rate of 513,000, and multifamily permits jumped 11.2% for an annual rate of 299,000.
Multifamily starts jumped 12.4% for the month.
Newport stated, "The recovery is mainly taking place in the South and West, with the multifamily segment coming back faster than the single-family segment. Eventually, provided the economic recovery remains on track, the demographics will start to kick in—household formation will accelerate … and many young adults now living with parents will start moving out."
As for when the industry can expect starts to top the 1.5 million mark, Newport’s prediction is 2015.
Currently, the 30-year fixed mortgage rate on Zillow Mortgage Marketplace is 3.35 percent, which is down seven basis points from 3.42 percent at the same time last week.
This represents the lowest rate reported since Zillow Mortgage Marketplace launched in April 2008.
The previous low was 3.39 percent, first reported on July 10.
After reaching 3.44 percent on Friday, the 30-year fixed mortgage rate dipped and remained between 3.35 and 3.4 percent over the weekend, decreasing to the current rate this morning.
Erin Lantz, director of Zillow Mortgage Marketplace, stated, "Rates dropped to a new low this week on concerns about Spain’s deteriorating economy coupled with Moody’s downgrade of the stronger eurozone countries. This coming week, we expect rates to hover at record lows as investors remain concerned about eurozone economic stability and continue to flock to the relative safety of U.S. Treasuries and mortgage backed securities."
Currently, the rate for a 15-year fixed home loan is 2.8 percent, while the rate for a 5-1 adjustable-rate mortgage is 2.52 percent.
The weekly mortgage rate report from Homes.org discusses the major factors effecting mortgage rates today including current economic activity, average rates and forecasts for trends in the mortgage market.
The findings in this week’s Homes.org mortgage report will make buyers and homeowners that are looking to refinance happy.
After remaining steady last week, mortgage rates have decreased to record lows once again.
This week the 30-year fixed rate mortgages dropped two basis points and the 15-year fixed rate slipped three basis points.
The 30-year fixed-rate mortgage average stayed at 3.66% in the week ending June 28, matching a record low set in the prior week, Freddie Mac stated.
A year earlier, the rate was 4.51%.
In order to obtain the latest 30-year rate, payment of an average 0.7 point was required, according to Freddie, a buyer of residential mortgages.
Frank Nothaft, Freddie Mac’s chief economist, stated "Mortgage rates were virtually unchanged this week hovering at or near record lows and should further help to support a recovering housing market."
The 15-year fixed-rate mortgage decreased to 2.94% in the most recent week, which is matching a record set earlier this month, from 2.95% in the prior week.
The average rate on the 5-year Treasury-indexed hybrid adjustable-rate mortgage grew to 2.79% from 2.77%.
The 1-year Treasury-indexed ARM remained at 2.74%.
A rebound in housing completions is scheduled to push an 8.2% annual growth in U.S. demand for cabinets to $15.3 billion in 2016, according to a new report by The Freedonia Group.
That’s a 48.5% percent increase from 2011’s $10.3 billion demand value and surpasses 2006’s $14.9 billion mark.
The kitchen cabinets segment is scheduled to see the fastest growth, having accounted for more than 80% of 2011’s demand value at $8.3 billion.
Architects and designers specing larger accessible spaces are scheduled to be reflected in more and bigger cabinets, particularly those with value-added amenities including pull-out drawers and shelves, and wine racks.
The segment is scheduled to to grow 8.6% annually through 2016 to value $12.6 billion.
Bathroom-cabinet demand is scheduled to grow by 6.5% annually to value $1.7 billion in 2016, as an increasing number of homes include more bathrooms and homeowners seek out cabinets that look good but offer secure storage options.
Compared with demand for kitchen cabinets, which decreased 7.7% each year from 2006 to 2011, bathroom-cabinet demand fell only 4.8% annually during that period.
Overall cabinet demand dropped 7.2% annually during that period.
Average U.S. rates on 30-year and 15-year fixed mortgages this week decreased to fresh record lows for the sixth consecutive week.
Cheap mortgages continue to help grow prospects for home sales this year.
According to mortgage buyer Freddie Mac, the average rate on the 30-year loan slipped to 3.67 percent.
That’s down sharply from 3.75 percent last week and the lowest since long-term mortgages started in the 1950s.
The 15-year mortgage, decreased to 2.94 percent.
That’s a slip from 2.97 percent last week.
Rates on the 30-year loan have been below 4 percent since early December.
The low rates are a significannt reason the housing industry is showing signs of a recovery this year.
A drop in rates could provide some help to the economy if more people refinance as well.
Average U.S. rates on 30-year and 15-year fixed mortgages decreased to record lows again this week, with the 15-year loan dropping below 3 percent for the first time ever.
Low rates have helped brighten the outlook for home sales this year.
According to mortgage buyer Freddie Mac, the average rate on the 30-year loan slipped to 3.75 percent.
That’s a decrease from 3.78 percent last week and the lowest since long-term mortgages started in the 1950s.
The 15-year mortgage dropped to 2.97 percent.
That’s down from 3.04 percent last week.
Rates on the 30-year loan have been under 4 percent since early December.
The low rates are a significant reason the housing industry is showing modest signs of a recovery this year.
The U.S. economy grew at an annual rate of 1.9 percent in the first three months of the year.
Analysts believe the economy is growing at a faster rate this spring.
They estimate growth at an annual rate of between 2 percent and 2.5 percent in the April-June quarter.
Several expect the economy will maintain that pace for all of 2012, which is an improvement from last year’s 1.7 percent growth.
Growth of 2.5 percent is usually enough just to keep pace with population changes.
The majority of economists say it takes nearly twice as much growth to lower the unemployment rate by 1 percentage point over a year.
The government offers three estimates for gross domestic product.
Gross domestic product is the output of all goods and services, which features everything from haircuts and coffee to appliances and airplanes.
Last month, Houston, Tx‘s housing recovery continued as home sales increase in nearly every price segment while inventory dropped.
Overall, single-family home sales grew 9.6 percent in April compared with a year earlier, the Houston Association of Realtors reported.
It was the 11th straight month of sales that exceeded the same month a year earlier.
Houston’s real-estate market continues to benefit from a healthy economy, according to the association, which cited the addition of 96,000 jobs over the past year.
Low interest rates and a positive change in the mind-set of buyers is helping restore strength as well.
Pending sales, an indicator of future activity, increase at the end of April to 4,059.
That’s 7.8 percent higher than last year as well.