The 30-year fixed mortgage set a new record-low – 3.75%, according to Freddie Mac’s Primary Mortgage Market Survey. The 15 year fixed also fell, landing at 2.97% on 5/31/12.
The 30-year fixed-rate mortgage dropped .8% to 3.75 percent for the week ending May 31. Last year, it was 4.55 percent. The 15-year fixed slid below the 3% mark, averaging 2.97 percent, down .7 points, from last week. Last year, the 15-year fixed stood at 3.74 percent.
Declines in the long term treasure bonds caused by concerns over the economic problems with the Eurozone have lead to continuing declines in mortgage rates. Frank Nothaft, VP and Chief Economist for Freddie Mac stated, “Compared to a year ago, rates on 30-year fixed mortgage rates are almost 0.9 percentage points lower which translates into nearly $1,200 less in annual payments on a $200,000 loan,”
Bankrate.comalso reported record lows for mortgages. Bankrate’s national weekly mortgage survey includes data from the top 10 banks and thrifts in the top 10 markets
The report showed that April home prices across the U.S. increased on a year-over-year basis by 1.1 percent. March also saw an increase so this was the second consecutive year-over-year increase in 2012 which is the first time two consecutive increases have occurred since June 2010.
Prices in Texas were up 2.4% and the Dallas-Plano-Irving area was up (3.5 percent) year over year. Dallas- Plano- Irving had the second appreciation in the nation
Anand Nallathambi, President and CEO of CoreLogic, said the projected increase is based on low home inventory levels. “We see the consistent month-over-month increases within our HPI and Pending HPI as one sign that the housing market is stabilizing,” said Nallathambi. “Home prices are responding to a restricted supply that will likely exist for some time to come-an optimistic sign for the future of our industry.”
Overall this is good news for home buyers. The low interest rates along with bargain basement prices for houses are making housing an excellent deal. However, if housing prices continue to increase, the best deals will be gone soon.
Core based Statistical Area’s with the highest 12-month appreciation (including distressed sales)
1. Phoenix-Mesa-Glendale (11.3 percent)
2. Dallas-Plano-Irving (3.5 percent)
3. Washington-Arlington-Alexandria (2.8 percent)
4. Houston-Sugar Land-Baytown (2.0 percent)
5. Philadelphia (1.7 percent)