30 year loan plans to hit their lowest numbers since June of last year (2013). Yields from Treasury Bonds marked new lows. Now it is much more affordable to borrow the funds necessary to buy a home.
- Freddie Mac says nationwide average for 30 year loan is 3.97%, down from 4.12 while 15 year loans are at 3.18% from 3.3%
- 10 year notes now trade at 2.1% which is down from 2.34%. The bond yields are rising, because of the falling prices on bonds.
- Treasury yields have dropped, and the federal reserve may force the Federal Reserve to delay interest rate increases.
- Down Jones Industrial Average is down 460 points and all three US Stock indexes were in negatives for the year. Fear Index rose sharply.
- Mortgage rates are down, despite the Federal Reserve's ending of monthly bond purchases. This is to keep long term borrowing rates low. Shorter term loan rates will be kept at near zero levels until inflation shows signs of rising.
- Freddie Mac surveys lenders across the US to calculate average mortgage rates. This average DOES NOT include extra fees, which most borrowers pay to get lower rates. A POINT IS 1% OF THE LOAN AMOUNT.
- Average fee for a 30 and 15 year mortgage is .5 points. For a one-year ARM, the average rate fell to 2.38 percent from 2.42 percent. The fee held at 0.4 point.
