Published: Sunday, July 4, 2010
Real estate notebook
Mortgage rates
Mortgage rates have sunk to the lowest level in more than five decades, but consumers aren’t rushing to refinance their loans or buy homes.
Mortgage company Freddie Mac said Thursday the average rate for 30-year fixed loans sank to 4.58 percent this week.
That’s down from the previous record of 4.69 percent set last week and the lowest since the mortgage company began keeping records in 1971. The last time they were cheaper was the 1950s, when most long-term home loans lasted just 20 or 25 years.
Rates have fallen over the past two months. Investors wary of the European debt crisis and the stock market have shifted money into the safety of Treasury bonds, driving down yields. Mortgage rates tend to track the yields on long-term Treasurys.
On Wednesday, the yield on the benchmark 10-year Treasury note dropped to 2.95 percent. That was the first time it has fallen below 3 percent since April 2009, when the markets were beginning to recover from the financial crisis.
But tighter lending standards and declining home equity have made it difficult for many borrowers to refinance. Many who do qualify have already done so over the past 18 months.
Many Americans owe more on their mortgages than their homes are worth and can’t refinance through the usual channels. The Obama administration has launched programs to help borrowers refinance if they owe up to 25 percent more than their home’s value and have their loans guaranteed by mortgage giants Freddie Mac or Fannie Mae.
About 291,000 homeowners have participated as of March — a small fraction of the estimated 15 million homeowners who are “underwater” on their mortgages.
Rates on 15-year fixed-rate mortgages fell to an average of 4.04 percent, the lowest on records dating to September 1991 and down from 4.13 percent a week earlier.
Rates on five-year adjustable-rate mortgages averaged 3.79 percent, down from 3.84 percent a week earlier. That was also the lowest on Freddie Mac’s records, which date back only to January 2005.
Average rates on one-year ARMs rose to 3.8 percent from 3.77 percent.
The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount. The nationwide fee for all types of loans in Freddie Mac’s survey averaged 0.7 a point.
Refinancing is generally considered worthwhile for homeowners who can shave at least three-quarters of a percentage point off the rates they pay now and plan to stay in their homes for a long time.
Besides the fees for the mortgage broker or lender, there are fees for title insurance, a new appraisal, document processing and other charges. In “no fee” mortgages, costs are often added to the loan amount, or the interest rate is higher.
Meetings
Commercial Real Estate Women will look at how the Gates Foundation planned and is building a campus relecting its core values during a luncheon meeting at noon Thursday at WAC, 1325 Sixth St. in Seattle, Register at www.crewseattle.org.
Seminars
The ReMax Bothell office is hosting a free seminar for first-time home buyers using the state Housing Finance Commission curriculum from 10 a.m. to 3:30 p.m. July 10 at the Woodlands Technology Building at 1909 214th St. SE, Unit 205, Bothell. Instructors are Cheryl Lewis and Tom Lasswell. Call 425-412-5236.
Home Realty will hold a free seminar, also for first-time buyers, from 6:30 to 8 p.m. at the Alderwood Business Center, 3500 188th St. SW, Lynnwood. Jim Curtiss and Tom Lasswell are the instructors. Call 425-412-5236.
Send your real estate news to Mike Benbow, Business editor, The Herald, P.O. Box 930, Everett, WA 98206, by fax at 425-339-3435 or by e-mail at economy@heraldnet.com.
Mortgage rates have sunk to the lowest level in more than five decades, but consumers aren’t rushing to refinance their loans or buy homes.
Mortgage company Freddie Mac said Thursday the average rate for 30-year fixed loans sank to 4.58 percent this week.
That’s down from the previous record of 4.69 percent set last week and the lowest since the mortgage company began keeping records in 1971. The last time they were cheaper was the 1950s, when most long-term home loans lasted just 20 or 25 years.
Rates have fallen over the past two months. Investors wary of the European debt crisis and the stock market have shifted money into the safety of Treasury bonds, driving down yields. Mortgage rates tend to track the yields on long-term Treasurys.
On Wednesday, the yield on the benchmark 10-year Treasury note dropped to 2.95 percent. That was the first time it has fallen below 3 percent since April 2009, when the markets were beginning to recover from the financial crisis.
But tighter lending standards and declining home equity have made it difficult for many borrowers to refinance. Many who do qualify have already done so over the past 18 months.
Many Americans owe more on their mortgages than their homes are worth and can’t refinance through the usual channels. The Obama administration has launched programs to help borrowers refinance if they owe up to 25 percent more than their home’s value and have their loans guaranteed by mortgage giants Freddie Mac or Fannie Mae.
About 291,000 homeowners have participated as of March — a small fraction of the estimated 15 million homeowners who are “underwater” on their mortgages.
Rates on 15-year fixed-rate mortgages fell to an average of 4.04 percent, the lowest on records dating to September 1991 and down from 4.13 percent a week earlier.
Rates on five-year adjustable-rate mortgages averaged 3.79 percent, down from 3.84 percent a week earlier. That was also the lowest on Freddie Mac’s records, which date back only to January 2005.
Average rates on one-year ARMs rose to 3.8 percent from 3.77 percent.
The rates do not include add-on fees known as points. One point is equal to 1 percent of the total loan amount. The nationwide fee for all types of loans in Freddie Mac’s survey averaged 0.7 a point.
Refinancing is generally considered worthwhile for homeowners who can shave at least three-quarters of a percentage point off the rates they pay now and plan to stay in their homes for a long time.
Besides the fees for the mortgage broker or lender, there are fees for title insurance, a new appraisal, document processing and other charges. In “no fee” mortgages, costs are often added to the loan amount, or the interest rate is higher.
Meetings
Commercial Real Estate Women will look at how the Gates Foundation planned and is building a campus relecting its core values during a luncheon meeting at noon Thursday at WAC, 1325 Sixth St. in Seattle, Register at www.crewseattle.org.
Seminars
The ReMax Bothell office is hosting a free seminar for first-time home buyers using the state Housing Finance Commission curriculum from 10 a.m. to 3:30 p.m. July 10 at the Woodlands Technology Building at 1909 214th St. SE, Unit 205, Bothell. Instructors are Cheryl Lewis and Tom Lasswell. Call 425-412-5236.
Home Realty will hold a free seminar, also for first-time buyers, from 6:30 to 8 p.m. at the Alderwood Business Center, 3500 188th St. SW, Lynnwood. Jim Curtiss and Tom Lasswell are the instructors. Call 425-412-5236.
Send your real estate news to Mike Benbow, Business editor, The Herald, P.O. Box 930, Everett, WA 98206, by fax at 425-339-3435 or by e-mail at economy@heraldnet.com.
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