Sunday, August 30, 2009

Charlotte Mortgage Rates Still Historically Low

Piece from Charlotte Biz Journal
Long-term mortgage rates edged up this week but remain well below year-ago levels.
Freddie Mac says 30-year fixed-rate mortgages averaged 5.14 percent in the week ending Aug. 27, up from 5.12 percent last week. A year ago, 30-year mortgages averaged 6.4 percent.
One-year adjustable-rate mortgages averaged 4.69 percent this week, unchanged from last week.
"Long-term mortgage rates were barely changed this week, remaining historically low, which is helping to sustain a high level of affordability in the home-purchase market," says Freddie Mac (NYSE: FRE) chief economist Frank Nothaft. "Low rates contributed to existing-home sales rising for the fourth consecutive month to an annual pace of 5.24 million, in July, the most since August 2007, according to the National Association of Realtors."
The NAR reported July existing-home sales rose 7.2 percent. On Thursday, the U.S. Commerce Department reported a 9.6 percent increase in month-over-month sales of new homes.
The Mortgage Bankers Association says mortgage applications rose 7.5 percent last week as home buyers re-entered the market, although more than half of mortgage applications are homeowners refinancing existing mortgages.

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