30-year mortgages hit 2011 low

Mortgage rates have dropped this past week. The affordability to purchase a home is at an all-time high and is in some cases CHEAPER to buy a home then rent a place. If you are interested in purchasing a home please contact David Abramson (david.abramson@LNF.com or 240-475-5001) and he will break-down the benefits why to buy a home instead of renting.

Long-term mortgage rates fell again this week, with the average rate on a 30-year fixed-rate loan matching the lowest level this year.

Freddie Mac says a 30-year fixed-rate mortgage averaged 4.71 percent this week, down from 4.78 percent last week. A 15-year fixed-rate dropped to 3.89 percent, down from 3.97 percent.

A one-year adjustable-rate mortgage averaged 3.14 percent this week, little changed from last week.

“Weaker economic-data reports reduced Treasury bond yields and allowed mortgage rates to drift lower for the third consecutive week,” says Freddie Mac (OTCBB:FMCC) Chief Economist Frank Nothaft.

The latest reports on the housing market have been more positive.

The National Association of Realtors says pending sales of existing homes rose for the second consecutive month in March and reached the highest level since last November.

Yet, the monthly Standard & Poor’s/Case-Shiller Home Price Index released last week showed prices were lower in 19 of the 20 largest cities in February.

Home prices in the Charlotte market fell 5 percent for the year ended in February. Prices in February dipped 1.2 percent from January levels.

Charlotte’s drop tied for the 10th-largest among those markets.

The only market to post a gain for the year was Washington, D.C., with a 2.7 percent increase.

Phoenix was the weakest market, with a price decline of 8.4 percent. It was followed by Minneapolis, down 8.3 percent, and Seattle, down 7.5 percent.

Source: BizJournals

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