A government shutdown was averted.
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“If you’re only looking at the interest rate spread, then it probably makes sense to take a five-year fixed if you think there is any likelihood of the Bank of Canada increasing rates any time soon”, said Jason Scott, an Edmonton mortgage broker with TMG The Mortgage Group.
Attributed to Sean Becketti, chief economist, Freddie Mac.
At the current average 30-year fixed mortgage rate of 4.00 percent, the monthly payment on a $200,000 loan is $955.98.
The best 30 year refinance fixed rate loan interest rates have been offered at 3.50% at PHH Mortgage with an April of 3.723%. The same time a year ago, the 15-fixed mortgage loan averaged a rate of 3.36%.
[What the new mortgage closing process means for consumers].
Despite the low mortgage rates, fewer Americans signed contracts to buy homes in August, as pending sales slumped amid broader concerns about the US stock market and global economy. The 15-year FRM this week averaged 3.07 percent with an average 0.7 point, down from last week when it averaged 3.08 percent. At this time a year ago, the 1-year ARM averaged a rate of 2.42%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.91 percent this week with an average 0.4 point, unchanged from last week. “As a result, the 30-year mortgage rate remained virtually unchanged, dropping one basis point to 3.85 percent”.
Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in 10 top markets.
The Mortgage Bankers Association reports an nearly 7 percent decline in loan application volume from the previous week.
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Signed contracts to purchase homes have climbed a healthy 6.1 percent over the past 12 months, aided by steady job growth and low loan rates.
