30 Year Mortgage rates are currently averaging 3.45%. There is a 30 year mortgage rate average series on FRED, published by Freddie Mac, which has noted a down-trend in the average 30-Year Mortgage rate. 3.45% is the lowest we’ve seen since a brief period in late 2013 where the average was about a dozen basis […]
As of the writing of this article (weekend before the 4th), 30 year mortgage rates are now at roughly 4.4% on average nationwide – 4.39%, according to Bankrate. As recently as early last month, Bankrate showed average rates at 3.40% on a 30 year mortgage. It’s not that the current mortgage cost increase is unprecedented […]
Have you been paying attention to the mortgage market lately? That’s one of the reasons why we’re around… to keep track of these things! We’ve been watching the recent mortgage rate spike with a bit of curiosity (and our fingers crossed) as we’re planning on taking advantage of a refinance on our primary home. Looking […]
We’ve got a treat for you today – a spiffy graph we created with Google Drive (née Documents). Thanks to comments from fellow Burbed commenter SEA on this article, we decided to take another look at the relationship between mortgage rates and home prices. Thought we did it once before? Not quite – we had […]
Last week, my colleague Cameron gave you this nice primer on the mortgage interest deduction and who it really benefits. Today, we’re going to take this topic one step further (on the sell-side) and discuss government intervention in the mortgage market.
There is a mortgage strategy variously described in different corners of the internet where a mortgage is refinanced… and payments stay steady. For this strategy, a borrower is currently paying some monthly payment, and will continue to pay the exact same monthly payment after their mortgage is refinanced. The benefits are usually explained as an acceleration of mortgage payments and a “guaranteed investment return”. You may find yourself in a situation where you are considering this form of accelerated mortgage payments. Is it worth it? Let’s run the numbers and find out!
‘Conventional’ knowledge, until the last couple of months, was that home prices bottomed in late 2009. Recent data on home sales shows a local maximum in 2010 followed by a further decline – leading some economists to believe we are now in a “double dip” where housing prices will continue to decline in the immediate future. The most recent data point is from Zillow, estimating that (a record) 28.4% of all single family homes are currently underwater – meaning mortgage holders owe more than their house would sell for on the market. Full disclosure: I’m currently testing the real estate market on the buy side.
… isn’t always good for the individual investor. For example, the S&P 500 has rallied back more than 400 points since March, but the Federal Lending Rate is somewhere between 0 and 0.25%. The rate has all sorts of consequences for Main Street- it mostly affects short term rates. In the carnage, even asset classes that were once expected to provide a little more return have suffered- as of today, the average money market rate is a mere 1.07%.