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Mortgage Rates Fall and Home Sales Rise

April 29, 2013

April 25th, 2013 (www.bankrate.com)

Mortgage rates inched closer to historic lows this week as more homebuyers jumped into an increasingly competitive housing market.

The 30-year fixed has dropped for six weeks in a row. If it continues to fall at this pace, the 30-year rate soon will reach a record low again, which was 3.5 percent in early December, according to Bankrate’s weekly survey.

The Fed has also done everything in its power to keep rates low, hoping to spur growth in the housing market. While low interest rates alone can’t fix the market overnight, they are helping.

Borrowers can thank the Federal Reserve and the still-weak labor market for the low rates, says Bob Walters, chief economist for Quicken Loans.

“Even though the economy is showing some improvement, it’s far from stable,” Walters says. “There are still lots of systemic problems in the economy and a lot of slack in the jobs market.”

Sales of newly built homes increased 1.5 percent in March to a seasonally adjusted annual rate of 417,000, the Department of Commerce said Tuesday.

“This is the second-best sales number we’ve seen since early 2010 and a good sign of the continued, gradual headway that our industry is making toward recovery as more buyers jump off the fence in time to take advantage of today’s low interest rates and prices,” says Rick Judson, chairman of the National Association of Home Builders and a homebuilder from Charlotte, N.C.

Sales of previously owned homes didn’t do as well in March, but they remain much better than last year. The National Association of Realtors reported this week that sales declined 0.6 percent from February to a seasonally adjusted annual rate of 4.92 million. That’s 10.3 percent above last year’s March figures.

NATIONAL RATE SURVEY RESULTS

April 25th, 2013 (Bankrate.com)

30-year Conventional:

3.57% — with avg. points: 0.31 pts

15-year Conventional:

2.80% — with avg. points: 0.31 pts                                                                                          

30-year FHA:

3.30% — with avg. points: 0.31 pts

5-year Conventional ARM:

2.65% — with avg. points: 0.31 pts

30 Year Fixed Trend Over Last 3 Months

Mortgage analysis

 

COLDWELL BANKER HOME LOANS

DAILY RATE CHANGES – LAST 5 BUSINESS DAYS

Date           Conventional            FHA                VA          

                              

04/24         Slightly Higher      Unchanged      Unchanged     

      ·        10 Year Treasury Yield closed at  1.70

 

04/23         Unchanged      Slightly Lower    Slightly Lower       

      ·        10 Year Treasury Yield closed at  1.70

 

04/22         Unchanged      Slightly Higher  Slightly Higher             

      ·        10 Year Treasury Yield closed at  1.70

 

04/19         Unchanged           Unchanged        Unchanged                

      ·        10 Year Treasury Yield closed at  1.70

 

04/18         Unchanged      Slightly Higher  Slightly Higher             

      ·        10 Year Treasury Yield closed at  1.68

RATEFORECAST

April 25th, 2013  (Bankrate.com)

Will rates rise or remain relatively unchanged this week?

Industry experts and analysts provide their insights.

 

·       18% of respondents expect rates to fall in the coming weeks

 

·       9% predict a further increase in mortgage rates while the remaining

 

·       73% forecast that mortgage rates will remain more or less unchanged

Competitor Updates

 

Lender                            30 Year                     15 Year           

 

Bank of America      3.375% w/ 1.125 pt    2.625% w/ 0.875 pt

                              

Wells Fargo              3.50% w/ 1.00 pt        2.625% w/ 1.00 pt

 

Citi Mortgage           3.50% w/ 1.125 pt       2.75% w/ 1.00 pt

 

Chase                      3.375% w/ 1.375 pt      2.625% w/ 1.125 pt     

 

CBHL$                  3.5% 0pts                   2.75% 0pts

               

 

*All rates reported from each competitor’s website as of 7:40am on April 25th

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