Fixedmortgage ratesinched down again for the fourth consecutive week, bringing them to new lows in early 2015.
Averaging 3.63%, the 30-year fixed-rate mortgage is at its lowest level since the week ending May 23, 2013, according to the latest survey from mortgage buyer Freddie Mac.
Last week at this time, the 30-year fixed-rate mortgage averaged 3.66%. A year ago, it was trending at 4.39%.
“I don’t think there will be much upward pressure on rates next week and doubt they will drop much lower than where they are at now,” said Polyana da Costa, senior mortgage reporter at Bankrate.com, which surveys experts in the mortgage industry to see if they believe mortgage rates will rise, fall, or remain relatively unchanged.
The low rates have led to asurge in mortgage applications recently. Mortgage application volume jumped 14.2% over the last week, according to the Mortgage Bankers Association (MBA). Total volume is now 41% higher than it was one year ago, and it’s driven entirely by refinances, the MBA says.
Applications to refinance increased by 22% week-over-week––up 63% from a year ago.
The average rate on a 15-year fixed mortgage also registered a drop, to 2.93% from 2.98% last week. A year ago, it averaged 3.44%, according to Freddie Mac.
Averages for the two most popular hybrid adjustable-rate mortgages were mixed. The five-year ARM dropped from 2.90% to 2.83% week-over-week. The one-year ARM held steady at 2.37%.
In the latestMortgage Rate Trend Index, 59% of the panelists polled think rates will remain relatively unchanged, while 33% predict rates will decrease.
“Due to the lack of big economic news this week and the fact that last Friday (Jan. 16) saw a jump in mortgage rates, I expect the market to correct itself,” said Shashank Shekhar, CEO of Arcus Lending in San Jose, CA. “The rates will mostly remain flat but should go down by a small margin.”
Originally appeared on Realtor.com, by Rachel Stultz
Author:Will Cook Phone: 760-774-3066 Dated: January 23rd 2015 Views: 177 About Will: Ranked in the top 1% of all agents valley wide, Will is an Associate Broker and Team Leader of the W...
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About WILL COOK GROUP|Keller Williams Luxury Homes|BRE# 01879277
Ranked in the top 1% of all agents valley wide, Will is an Associate Broker and Team Leader of the WILL COOK GROUP at Keller Williams Luxury Homes
A native of Baton Rouge, Louisiana, Will attended graduate school in Boston and worked as a Medical Software Project Director focused on managing client expectations through sophisticated software implementation projects for many years. Will’s experience managing large scale projects in the corporate world has suited his transition to real estate over 15 years ago. Will’s mission has been to use integrity and accountability to exceed his client`s expectations. He has worked in the luxury markets of Boston and Miami Beach and has also owned his own real estate firm in Louisiana.
As expert real estate advisers serving the Palm Springs Area real estate market, Will and his team specialize in finding buyers great deals and they would love to help you find your very own slice of the California Desert!