Rate on 30-Year Mortgage Hits 2-Year High at 4.51%

mortgages interest rates freddie mac home buying real estate federal reserve
Nam Y. Huh/AP
WASHINGTON -- The average U.S. rate on the 30-year fixed mortgage rose this week to 4.51 percent, a two-year high. Rates have been rising on expectations that the Federal Reserve will slow its bond purchases this year.

Mortgage buyer Freddie Mac said Thursday that the average on the 30-year loan jumped from 4.29 percent the previous week. Just two months ago, it was 3.35 percent - barely above the record low of 3.31 percent.

The average on the 15-year fixed mortgage rose to 3.53 percent from 3.39 percent last week. That's the highest since August 2011.

Chairman Ben Bernanke has said the Fed could slow its bond purchases this year if the economy strengthens. The purchases have kept rates low. The yield on the 10-year Treasury, which mortgage rates typically track, has been rising.


Even with the gains, mortgage rates remain low by historical standards. Low rates have helped fuel a housing recovery that is helping to drive economic growth this year.

The annual sales pace of previously occupied homes topped 5 million in May for the first time in 3 ½ years. And sales of new homes rose at the fastest pace in five years.

Greater demand, along with a tight supply of homes for sale, has pushed up home prices. It also has led to more home construction, which has created more jobs.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
  • The average fee for a 30-year mortgage was 0.8 point this week, up from 0.7 point last week. The fee for a 15-year loan also rose to 0.8 point from 0.7 point.
  • The average rate on a one-year adjustable-rate mortgage was unchanged at 2.66 percent. The fee rose to 0.5 point from 0.4.
  • The average rate on a five-year adjustable mortgage rose to 3.26 percent from 3.10 percent. The fee was unchanged at 0.7 point.

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Faith Yakatate

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December 16 2013 at 2:57 AM Report abuse rate up rate down Reply
mac2jr

Been to a post foreclosure sale? I have, and it displays the insanity of the bankers and the Real Estate Agents, and unfortunately HUD, Fanny Mae, and Freddy Mac.

A home is foreclosed upon instead of working out some sort of payment plan, and then the house is partly destroyed by the owners that are being evicted. The house then sits empty and subject to criminal activity that further destroys it. Then the Short Sale happens in which the $245,000 house is offered at $150,000, and as no offers come in the price drops and drops and drops, to say $60,000. At this time a buyer comes along and the bank says no, they would rather go to foreclosure and auction, but since the house has now set empty for over an year in all sorts of weather, it has developed more problems and still does not sell. Thus the post foreclosure sale in which the Real Estate that was hired to sell it in the first place knows that it cannot make more than a grand or two commission and therefore, they do not take care of the property and let it further rot. Pipes freeze and break, windows are broken by vandals, cabinets and appliances are stolen, copper wiring and pipe are stolen, and such, until the property is worth $10,000 and even at that cannot be sold. Next comes the bulldozers, and what could have been a win / win for all has due to stupidity turned into a loss for all, including the neighborhood, as the $10,000 house now pulls the value of all surrounding house down..

Walk up America, Wake UP, you are being screwed ..

July 12 2013 at 2:01 AM Report abuse +3 rate up rate down Reply
AL CONFER

Big deal! Interest rates went up on homes and still historically low. When the market allowed people with bad credit and no down payments to purchase a home, what did you think was going to happen? Many of the people that lost homes were nothing more than glorified renters that should have never been allowed to purchase anything because of bad credit. Our government touted living the American dream, but changed the rules so that virtual deadbeats could buy a home and they went right back to their old ways and didn't pay. Back in the day, 6% interest rates were the norm and a 20% down payment was the norm as well. People then thought twice about not paying and losing their home because they had that 20% down which they lost. Under the rules that permitted deadbeats to buy, nothing down and the rest when you catch thema dnthe bubble burst. Government has no excuse for being involved in forcing banks to lend money to those that ought not be able to borrow a dime.

July 12 2013 at 1:59 AM Report abuse rate up rate down Reply
jakeylee38

"Greater demand, along with a tight supply of homes for sale, has pushed up home prices. It also has led to more home construction, which has created more jobs."? Where in the world is this going on at? Tight supply of homes? Fannie Mae alone has 190 for sale in my county, and is preparing to dump another wave of foreclosed homes onto the market here. And I don't know where whomever wrote this was refering to, but construction hasn't increased here in Florida. New Jobs? Those are our jobs and theres no work in the trades still. This is more Media Hype saying everything is going to be just fine. Brought to you by whom? Oh, Bank of America....Go Figure!

July 11 2013 at 11:31 PM Report abuse +2 rate up rate down Reply
RMS

The same problem still exists. Just try qualifying for a mortgage these days. Banks are not as willing to make loans these days and take the risks. They want stellar credit, large down payments, etc. Also, many homeowners are "underwater" on their mortgages, having purchased at the height of the market and cannot put their property up for sale, thus interupting the 7 year cycle of homes coming to the market. I do see homes selling quicker than they had been due to a lack of inventory.

July 11 2013 at 9:48 PM Report abuse +1 rate up rate down Reply
1 reply to RMS's comment
vlady1000

Do not believe everything you read/hear. It is not that bad at getting approved. In the last 24 months EVERY person that I know that tried to refi or purchase was approved. A few friends, several co-workers, 2 tenants (with a 2.5% down HUD), my sister, my daughter, me (on several properties), etc. Just takes a little longer and they are looking at things closer. The way it should have always been.

July 11 2013 at 11:38 PM Report abuse rate up rate down Reply
itacurubi

That's still a very low mortgage rate. (And will almost certainly be down next week.)

July 11 2013 at 5:01 PM Report abuse +1 rate up rate down Reply
1 reply to itacurubi's comment
h.hughjardon

Ben pretty much just made that announcement.

July 11 2013 at 10:28 PM Report abuse -2 rate up rate down Reply
mac2jr

Real Estate in the Southwest
Something has been silently happening to America and its property ownership and that something is not in America's long term best interest.. There are people making billions in short-term profits, some are Americans taking advantage of the situation and of their fellow neighbors, but too many are foreigners that are stripping the USA of valuable Real Estate.

Here is what is happening; people who got 'nutty' during 2002-2005 period and went on a bidding war for homes that they 'thought' they could 'flip' got into trouble when the prices of the homes outstripped the amounts that other 'investors' and people would or could pay. This resulted in millions of homes across the USA going 'underwater' and their owner's walking away from their contracts and commitments, thus putting stress on the mortgage banking and Real Estate systems.

The banks are now holding loans that they are not collecting on, and therefore are 'dumping' homes onto the market in an attempt to recover something. Here is the rub...

We have millions of low income people that are currently paying rents that range from a few hundred dollars to over a thousand dollars per month, and these high rents are keeping these people from saving the thousands of dollars needed for a down payment and closing cost on a home that can cost much lower than he or she is paying in rent.. At the same time there is a glut of low priced homes, in the $70,000 or less range that have total monthly cost of less than $500 for mortgage, insurance, and taxes.

So why are these people not buying these homes and enjoying a better life with less cost and more money to spend on educations, clothing, automobiles, food, furniture, babies, etc.; simple even if he or she somehow gets the dollars for the down payment, he or she is NOT being allowed to purchase because there are NO homes to purchase..

Go to a website like Zillow.com and type in Tucson, or Las Vegas, or Phoenix and the map will light up with 'homes for sale'. Pick any that are 'for sale' in the under $70,000 range and try to buy it, you will find the words 'Pending', 'Contingent', Cash only', 'Bank Owned' etc., which means that the property has BEEN SOLD, it is no longer on the market, unless you want to outbid the buyer by tens of thousands of dollars.

Who are the 'buyers' of these properties; according to BBC (British Broadcasting Company) and their reporters, the British, the Australians, and the Canadians are buying up American Southwest properties as fast as each hits the marketplace via MLS (Multiple Listing System) and one has to wonder if some of these 'investors' are not paying Real Estate firms for 'advanced' info.

Thus, although the banks are getting rid of properties, and Real Estate Salespeople and Brokers are making money, Americans are getting screwed coming and going; first by not being able to purchase affordable homes, second by paying higher prices for homes when the market improves and these foreign

July 11 2013 at 4:20 PM Report abuse +3 rate up rate down Reply
1 reply to mac2jr's comment
h.hughjardon

It's not the rent that is keeling low income people from saving for down payments and closing costs. The rent is market value, or the tennants would go unrented. Its' the low income that keeps low income people fron saving for down payments and closing costs.

That's as far as I got into your stupis post....the ridiculous bullshlt was all I could take.

July 11 2013 at 10:26 PM Report abuse -3 rate up rate down Reply
mac2jr

Reverse Mortgage Scams

Don't let Grandmother be taken by the cons'

Considering a Reverse Mortgage?

Be careful, almost all of the Reverse Mortgage contracts require the homeowner to pay Property Tax and maintain Homeowner's Insurance on the property, and missing a payment can result in the Reverse Mortgage Company starting Foreclosure Procedures against the home.

http://www.huffingtonpost.com/2012/06/27/reverse-mortgage-foreclosures_n_1631626.html

Additionally, some Reverse Mortgage companies are not on the 'up and up' and deliberately exclude the Senior's signature on sections of the contract that then allow the Reverse Mortgage Company to come up with an 'excuse' to foreclose and therefore, steal the property.

Also, be careful of taking the Reverse Mortgage money and using it as a 'second' mortgage, investing it in stocks, bonds, etc., that may result in a loss of both the money and eventually the house.

Also note, that a Senior's home under a Reverse Mortgage may have certain negative aspects that can cause loss of inheritances. Make sure you understand the contract.

Some banks will no longer offer Reverse Mortgages due to the high percentage of Reverse Mortgage foreclosures due to none payment of taxes and insurances; Wells Fargo is one such bank that did not want to get a 'bad name' for having to initiate foreclosure actions and therefore dropped out of the market a few years back.

July 11 2013 at 4:19 PM Report abuse +3 rate up rate down Reply
1 reply to mac2jr's comment
RMS

Well of course you have to continue to pay the property taxes and homeowners insurance. You would pay these whether you had a regular mortgage, a reverse mortgage, or own your home outright. As for having doubts about the signatures on the documents, when in doubt have an attorney review them before signing. A reverse mortgage can be a safe, effective financial tool if used properly. And again, if worried about inheritances, an attorney or estate planner can tell you the consequences of ineriting a home with a reverse mortgage on it.

July 11 2013 at 9:44 PM Report abuse rate up rate down Reply
mac2jr

That means that Savings and Checking Account interest rates paid to to the depositors, are going up too, right?

July 11 2013 at 4:19 PM Report abuse +5 rate up rate down Reply
tm1160

Better buy while you can folks! It is not to often that you get a market with low rates and good prices. This window is beginning to close.

July 11 2013 at 2:43 PM Report abuse +1 rate up rate down Reply
1 reply to tm1160's comment
vlady1000

The window started to close 12 months ago (when prices were at the bottom) and now closing fast with both prices and rates going up pretty fast. In my area prices are up so much and now compound that with the higher interest rate, that same house now has a P&I payment of about 20% more than 12 months ago. Still time to get in, but the best time to buy is now far behind us.

July 11 2013 at 6:08 PM Report abuse -1 rate up rate down Reply